what is the reason behind this error in case statement

by

Your CASE...ELSE is 123, which is an integer. This takes precedence over varchar datatype. You are seeing the error as SQL Server is trying to convert your other values to integer datatype. Enclosing the ELSE value in single quotes should resolve this issue

declare @var varchar(10)='a' 
select case @var
when 'a' then 'hi'
when 'b' then 'hello'
else '123'
end

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