If you need a account, it is posible. But you should use a Azure Key Vault and rotate user´s passwords.
This examples is for a storage account, but SQL is too funcionality
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I have an on prem windows desktop app with an azure sql database backend. The connection is currently being made via sql ID in an ini file on prem. I need to change the connection to authenticate against Azure AD. A windows account is ready with perms on the Azure SQL database. The app has been registered in the Azure portal. My Azure experience is very limited, so any assistance is greatly appreciated.
If you need a account, it is posible. But you should use a Azure Key Vault and rotate user´s passwords.
This examples is for a storage account, but SQL is too funcionality