user: dbo unable to drop database

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I have a SQL agent job whereby we do a restore of a full backup of production data on a nightly basis. We are setting up a new server and when I attempt to run the job on the new server I receive an error on the job of

3701 - Cannot drop database because it does not exist or you do not have permission.

This is confounding me because we are using the dbo user to accomplish this step and the database is listed in sys.databases catalog view. I have tried altering the database to put it into single_user to no avail.

The first step of the job kills all connections and that passes. I am not sure where this error is coming from because everything looks in accord to me. We can also drop the database manually through logging in as the sa.

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