If a user:

Has the capability to edit course settings ('moodle/course:update')
Does not have the capability to add a scorm package instance. ('mod/scorm:addinstance')

Then:

Upon selecting SCORM from the Format drop down and clicking 'Save Changes',

The user is redirected to /course/modedit.php?add=scorm&type=&course=XXX&section=0&return=0&sr=0.

Since the user does not have proper privileges they are locked out of the course.

The course format selection menu should verify that the user has correct privileges prior to offering SCORM as an option in the drop-down in order to reduce confusion experience by curious new users.