Hello @Ranjith Kumar Bommineni ,
Welcome to the MS Q&A platform.
Azure SQL DB linked service won't support Azure AD authentication.
it only supports the below authentication types
1) SQL authentication
2) System Assigned managed identity
3) User Assigned managed identity
4) Service principals
Here is the document explaining each authentication type. If you have any further questions, please let us know
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Thank you, @Ranjith Kumar Bommineni