Thanks for your patience.
Reply from the internal team is as followed:
No, we don't support multi-form data with the invoke REST API endpoint proc. We only support x-www-form-urlencoded.
However, if you want this feature to be added to Azure SQL Database, please raise an idea on Feedback Channel Azure SQL DB:
https://feedback.azure.com/d365community/forum/ef2b2b38-2f25-ec11-b6e6-000d3a4f0f84
Team will take up depending upon the importance and up-votes.
Thanks