@Jie Yin I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others Opens in new window or tab", I'll repost your solution in case you'd like to "Accept Opens in new window or tab" the answer.
Issue: connect the on-prem K8S to Azure via Azure Arc, and enable the Azure monitor, how to collect the K8S data using Azure Sentinel?
Resolved by @Jie Yin found a open-source tools called logstash, this tools can be received the audit log from Kubernetes using Webhook, then send to Sentinel using the custom data connector of Sentinel(Use Logstash to stream logs with HTTP Data Collection API (legacy) | Microsoft Learn) .
If you have any other questions or are still running into more issues, please let me know.
Thank you again for your time and patience throughout this issue.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.