Instead of hardcoding SQL user name and password, store them in Azure key vault and use key vault reference in config files
Users should not have access to see these credentials (secret values) in the key vault
https://learn.microsoft.com/en-us/azure/azure-app-configuration/use-key-vault-references-dotnet-core?tabs=cmd%2Ccore2x
https://learn.microsoft.com/en-us/azure/key-vault/general/tutorial-net-create-vault-azure-web-app
Edit #1:
You can try using Managed Identity of app to access Azure SQL DB. This way, you won't use SQL user name and password.
This thread might help - https://stackoverflow.com/questions/56943539/limit-sql-azure-access-from-an-azure-web-app
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Please don't forget to Accept Answer and Up-vote if the response helped -- Vaibhav