Hello @jasejackson-8880 and thank you for your question.
Managed Applications is not one of the areas I work in, but I wanted to let you know of another possible solution.
Azure Data Share can allow you to keep the resource group in your tenant while providing the customer access to the end data. This would protect your IP while still getting the data to the customer. Azure Data Share copies the data from your datastore ( the sql database in your tenant) to the customer's datastore (which sits in the customer's tenant).
Using Azure Data Share in your case actually gives you more options. The customer can opt to receive full snapshots of the tables from your Azure SQL Database into their Azure SQL Database, or choose to receive the same data into their Azure Storage Account (Blob or ADL gen 2).
I am also reaching out internally for more information regarding your question on Managed Applications. If I hear back, I will let you know.