You’re right, MySQL is not connecting. But that’s normal, because normally MySQL doesn’t connect to anything, it’s your software that should connect to MySQL.
Joking aside, can you please clarify this a little bit? What is the error message you see? Can you please share the full error message, exactly as it is presented to you, rather than your own interpretation of it?
Also, you’re right that you cannot create databases through phpMyAdmin. But you can create databases through the MySQL Databases section in the control panel.