the connection string is incorrect
-i sde:sqlserver:"instance name" E.G: sde:sqlserver:server2 (here server2 is the SQL Server instance name)
Could you rephrase the question?
'sdetable -o create_view' was designed to be used with SDEBINARY or SDELOB storage,
where it's not possible to use SQL to make a view. Given spatial types, you should always
use SQL to create views (at a minimum, they allow the full syntax of the SQL language, not
a stripped-down subset). It's up to the RDBMS' optimizer to dictate differences from there.