Sql-server – Method (Policy Based Management, DDL Trigger, whatever) to prevent logins with sysadmin from granting sysadmin to other logins

You might be looking for something like Change Data Capture.

Change data capture is designed to capture insert, update, and delete activity applied to SQL Server tables, and to make the details of the changes available in an easily consumed relational format. The change tables used by change data capture contain columns that mirror the column structure of a tracked source table, along with the metadata needed to understand the changes that have occurred.

Change data capture is available only on the Enterprise, Developer, and Evaluation editions of SQL Server.

After a considerable amount of testing, I finally discovered the reason behind this error. The client connection explicitly set ANSI_WARNINGS and CONCAT_NULL_YIELDS_NULL OFF. XML data operations, such as @data.value('(/EVENT_INSTANCE/EventType)[1]', 'nvarchar(100)'), require both to be ON. I had attempted to override these within the trigger, but I may have placed them wrong. The final code below works, even with the explicit SET options in the connections from Great Plains:

CREATE TRIGGER [ddl_log] 
ON ALL SERVER 
FOR DDL_DATABASE_LEVEL_EVENTS, DDL_SERVER_LEVEL_EVENTS 
AS
BEGIN
SET NOCOUNT ON;
SET ANSI_WARNINGS, CONCAT_NULL_YIELDS_NULL ON;

DECLARE @data XML
SET @data = EVENTDATA() 

EXECUTE AS LOGIN='<dummy login>'
INSERT admin.dbo.ddl_audit (PostTime, DB_User, [Event], [TSQL], Host, DatabaseName)
VALUES (
   GETDATE(),
   CONVERT(NVARCHAR(100), ORIGINAL_LOGIN()),
   @data.value('(/EVENT_INSTANCE/EventType)[1]', 'nvarchar(100)'), 
   @data.value('(/EVENT_INSTANCE/TSQLCommand)[1]', 'nvarchar(2000)'), 
   CONVERT(NVARCHAR(100), HOST_NAME()),
   @data.value('(/EVENT_INSTANCE/DatabaseName)[1]','nvarchar(100)')
   ) ;
REVERT 
END

As an alternative, I also could have simply inserted EVENTDATA() as an XML LOB into a table, rather than parsing it out into columns. Because I would not be manipulating the XML, the SET options do not matter. Then I would just build an XML index for querying performance, and construct a view to use for audit log reporting that parses the XML in the view definition, in the same manner as I am doing above in my INSERT statement.

Thanks to Max for pointing me in a different research direction, and @AaronBertrand on #sqlhelp who helped me with correct SET options within the body of the trigger.