Why does the following script throw database still in use when selecting the master database first?

Question

Why does the following SQL query throw an error when I've first selected the master database before dropping the database in question?

Please see error and code below:

Msg 3702, Level 16, State 4, Line 5
Cannot drop database "XyzCompany" because it is currently in use.

Msg 1801, Level 16, State 3, Line 7
Database 'XyzCompany' already exists. Choose a different database name.

Code:

USE master;
GO

DROP DATABASE IF EXISTS XyzCompany;

CREATE DATABASE XyzCompany;
GO

USE XyzCompany;
GO