First of all, turn on the debug layer (D3D11_CREATE_DEVICE_DEBUG) and see the output for a more specific error!!!
EDIT: I'm getting:
D3D11 ERROR: ID3D11Device::CreateTexture2D: A D3D11_USAGE_DYNAMIC Resource must have MipLevels equal to 1. [ STATE_CREATION ERROR #102: CREATETEXTURE2D_INVALIDMIPLEVELS]
So, you cannot have 2+ mipmap levels for a dynamic resource. Use a default resource for that and update individual mipmaps with UdpateResource, I'd say.