Hi
Joel Prescilla •,
Thanks for the detailed response.
There is a Note in Microsoft documentation here which states that:
All newly created databases in SQL Database are encrypted by default by using service-managed transparent data encryption. Existing SQL databases created before May 2017 and SQL databases created through restore, geo-replication, and database copy are not encrypted by default. Existing SQL Managed Instance databases created before February 2019 are not encrypted by default. SQL Managed Instance databases created through restore inherit encryption status from the source. To restore an existing TDE-encrypted database, the required TDE certificate must first be imported into the SQL Managed Instance.
Reference Link: Transparent data encryption for SQL Database, SQL Managed Instance, and Azure Synapse Analytics
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