I just handed a work mate an output script from DataDude, which he ran in
Management Studio. Instead of producing the expected database he ended up with
one called $(DatabaseName)

Remember database pro uses SQLCMD to deploy databases

If you use Management Studio to run an output script, you’ll need to swap
into SQLCMD mode through the Query -> SQLCMD Mode menu. Or click the red
exclaimation icon in your toolbar