In my experience, you shouldn’t need to rename the database since the database name is not specified in the script (except in the comments). However, the domain name is all over it – this is not an Updraft fault, but a “feature of WordPress”. So if you are using a different domain name, you’ll have to change that in your file.
However, the error you are getting seems to be a simple permission error. All that the script does is drop and create tables (+ insert data), so I can only suggest that you try creating a table and dropping it before doing the import. This way, you can test weather there is a problem in the script of if you have a more basic problem with database permissions.