Question : not able to create DB from model database.

when i run the below,
create database TestLogInFULL
go
use TestLogInFULL
alter database TestLogInFULL set recovery full
select  * into TestLogInFULL from sysdatabases where 1=0

The errors are as below:
Msg 1807, Level 16, State 3, Line 1
Could not obtain exclusive lock on database 'model'. Retry the operation later.
Msg 1802, Level 16, State 4, Line 1
CREATE DATABASE failed. Some file names listed could not be created. Check related errors.
Msg 911, Level 16, State 1, Line 1
Could not locate entry in sysdatabases for database 'TestLogInFULL'. No entry found with that name. Make sure that the name is entered correctly.

why not?

Answer : not able to create DB from model database.

I fear, with your other question in mind about the db in full recovery mode behaving like in simple recovery mode, that you tampered somehow with the model database. I would suggest a new clean installation ...