I just had the same thing happen to me. I installed Kamailio via Apt, and I'm using a dedicated MySQL server, with non-root admin credentials.
Previously today I installed it using a local MySQL 5.7 database with no issues.

Kamailio Host: Kamailio 5.1.2 (Ubuntu 18.04)
MySQL Host: MySQL 8.0.13 (Windows Server 2012 R2)

It creates the database, then fails at granting permissions. Accounts were created and privileges flushed before executing.

> root@kamailio:~# kamdbctl create
> INFO: creating database kamailio ...
> mysql: [Warning] Using a password on the command line interface can be insecure.
> INFO: granting privileges to database kamailio ...
> mysql: [Warning] Using a password on the command line interface can be insecure.
ERROR 1064 (42000) at line 1: You have an error in your SQL syntax; check the manual that corresponds to your MySQL server version for the right syntax to use near 'IDENTIFIED BY '<password>'' at line 1

I turned on query logging on the database host but didn't see any errors there, or in the error log itself.

> 2018-11-21T01:58:15.045586Z     8 Connect <user>@kamailio on  using SSL/TLS
> 2018-11-21T01:58:15.046239Z     8 Query select @@version_comment limit 1
> 2018-11-21T01:58:15.046764Z     8 Query CREATE DATABASE kamailio CHARACTER SET utf8mb4
> 2018-11-21T01:58:15.189109Z     8 Quit
> 2018-11-21T01:58:15.208476Z     9 Connect <user>@kamailio on  using SSL/TLS
> 2018-11-21T01:58:15.209019Z     9 Query select @@version_comment limit 1
> 2018-11-21T01:58:15.210114Z     9 Quit

I've tried with the default MySQL 5.7 Client on Ubuntu, and upgrading it to 8.0.13, but got the same result.

Unfortunately I don't know how to see the output of the SQL Statement being sent (without installing 5.7), or I'd try to run it manually.

- Jonathan