An Azure managed PostgreSQL database service for app development and deployment.
Although pgaadauth appears in pg_available_extensions, it is a Microsoft-managed extension and isn't intended to be installed manually using CREATE EXTENSION pgaadauth. Therefore, the following error is expected:
ERROR: extension "pgaadauth" is not allow-listed for "azure_pg_admin" users
To use pgaadauth, enable Microsoft Entra authentication on the Azure Database for PostgreSQL Flexible Server. When Microsoft Entra authentication is enabled, Azure automatically enables the pgaadauth extension as part of the server configuration and restarts the server. After that, Microsoft Entra users and groups can be managed using the supported Entra authentication features rather than manually creating the extension.
References:
https://learn.microsoft.com/azure/postgresql/flexible-server/security-entra-configure
https://learn.microsoft.com/azure/postgresql/flexible-server/how-to-manage-azure-ad-users