Hello jolly,
Thanks for posting your question in the Microsoft Q&A forum.
When managing Transparent Data Encryption keys for SQL Server databases using Azure Key Vault across environments, it's recommended to use separate key vaults for each environment (Dev, UAT, Prod) to ensure proper isolation and security, especially when refreshing data from production to non-production environments.
Please don't forget to close up the thread here by upvoting and accept it as an answer if it is helpful