Hello @Jay Mehta ,
Just for clarification, I understood you want to use Azure SQL DB in the cloud and not Azure SQL Edge.
Azure Function has Azure SQL bindings in preview what comes with some limitations. For example, currently the SQL triggers are only supported for C# class library functions, not Python. While this is highly likely to change in the future, there is no guarantee. This feature is still in preview so be aware of the risk!
If you are fine to use the preview feature and C#, you might use the Azure SQL trigger and in your Azure Function what will do some processing logic to call another API or send a command via IoT Hub's REST API to your IoT Edge device.
You wrote "update a file..., we will monitor". Depending on the information you want to provide to the python code on the device, either you could instruct the Edge device to download this large file somewhere (e.g., Azure Storage) by passing a link to the device or you directly send the information via one of the cloud-to-device communication options
There is also an example architecture for a computer vision solution based on IoT Edge shown in the Azure Architecture Center with a full guide how to plan and design a cg workload.
----------
If your question was solved do "accept answer" and feel free to upvote. If you need additional information, please provide more details.