An Azure relational database service.
@Anikesh Das Thanks for reaching out, as per our discussion internally posting the answer below
Issue: Unable to create SQL Server in West US 2 region under MCAPS-Hybrid-REQ- subscription.
Root Cause: The subscription has an Azure Policy that enforces Microsoft Entra ID authentication only for SQL Server. The customer was attempting to create the SQL Server with mixed authentication (SQL + Entra), which was blocked by the policy.
Resolution: Select "Microsoft Entra authentication only" as the authentication method during SQL Server creation instead of "SQL and Microsoft Entra authentication." This satisfies the subscription's policy requirement and allows the server to be created successfully.