@Apurva Tiwari - Thanks for the question and using MS Q&A platform.
This is an excepted behavior, when you selected Authentication method as "Use only Microsoft Entra ID authentication" while creating the workspace.
How can I enable Reset SQL Admin password
option?
Note: Local authentication can be enabled/disabled later by an Azure Owner or Contributor of the Synapse workspace. You can also disable local authentication after a workspace is created through the Azure portal. Local authentication cannot be disabled until a Microsoft Entra admin is created for the Azure Synapse workspace.
According to official documentation: Use Microsoft Entra authentication for authentication with Synapse SQL
By allowing only Microsoft Entra authentication, centrally manage access to Azure Synapse resources, such as SQL pools. To disable local authentication in Synapse during workspace creation, select Use only Microsoft Entra authentication as the authentication method. A SQL Administrator login will still be created but it will be disabled. Local authentication can be enabled later by an Azure Owner or Contributor of the Synapse workspace.
There are two methods of authentication supported for Azure Synapse Analytics workspaces.
Example: I'm trying to creating Azure Synapse Analytics workspaces named chepra
with Authentication method as "Use both local and Microsoft Entra ID authentication" while creating the workspace. And another workspace named chepra2
Authentication method as "Use only Microsoft Entra ID authentication" while creating the workspace.
Azure Synapse workspace with Authentication method as "Use both local and Microsoft Entra ID authentication" while creating the workspace.
While creating selecting Authentication method as "Use both local and Microsoft Entra ID authentication" while creating the workspace.
Since this workspace supports Use both local and Microsoft Entra ID authentication, you will be able to see the Reset SQL admin password option as shown:
Azure Synapse workspace with Authentication method as "Use only Microsoft Entra ID authentication" while creating the workspace.
Since this workspace supports Use only Microsoft Entra ID authentication, you will be able to see the Reset SQL admin password is greyed out:
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