Azure SQL Server BACPAC import failed

Try running this against your master database (right click on the server name in SSMS -> New Query)

sp_configure 'contained database authentication', 1;
GO 
RECONFIGURE;
GO

After this, you can go through the import bacpac wizard again and the issue should be resolved.

Eventually I was able to resolve this issue by following option 2 suggested here

In nutshell,

1. Save the utility RemoveMasterKeyFrombacpac from here
2. Run the command .\RemoveMasterKey.ps1 -bacpacPath "C:\BacPacs\fileName.bacpac"

Once above command finishes we get the -patched bacpac which imported seamlessly.

Update

With new MS SQL Server 2016 (13.0.1745.2) and SSMS v17.6 this is not an issue anymore.