I believe Azure Database for PostgreSQL - Flexible Server does not provide a built-in feature to enforce password history.
For better security, it's a good practice to periodically rotate your admin password and database users passwords.
The Salted Challenge Response Authentication Mechanism (SCRAM) greatly improves the security of password-based user authentication by adding several key security features that prevent rainbow-table attacks, man-in-the-middle attacks, and stored password attacks, while also adding support for multiple hashing algorithms and passwords that contain non-ASCII characters.
Here is a reference document - https://learn.microsoft.com/en-us/azure/postgresql/flexible-server/concepts-security
Thank You!