Hello @spencer ,
Your understanding is correct - Parameterized linked services in Synapse do not support selection of a Managed Private Endpoint (via the Synapse Studio GUI or code).
In order to select Managed private endpoint - it requires the server name.
Note: If you pass server name as parameterized linked service - server name then the managed private endpoint shows as blank.
Hope this will help. Please let us know if any further queries.
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