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"Each logical server in Azure (which hosts SQL Database or Azure Synapse) starts with a single server administrator account that is the administrator of the entire server."
"SQL authentication is disabled when enabling Microsoft Entra-only authentication in the Azure SQL environment, including connections from SQL server administrators, logins, and users. Only users using Microsoft Entra authentication are authorized to connect to the server or database."
I believe this is how Azure SQL Server is intended to function. If you were to try and login with SQL auth it should fail. This is not an issue with the template itself. I believe this issue should be closed.
Originally posted by @mrajess in #13691
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