ORA-43929: Collation cannot be specified if parameter MAX_STRING_SIZE=STANDARD is set
The default collation can only be set if the init parameter max_string_size is set to extended.
SQL> select value from v$parameter where name = 'max_string_size';
STANDARD
SQL> alter session set default_collation = using_nls_comp;
ORA-43929: Collation cannot be specified if parameter MAX_STRING_SIZE=STANDARD is set
The following create table throws the same error (with max_string_size=standard):