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Not having support for Entra ID Authentication isn't a sustainable standpoint. Our organization is pushing us to mandate Entra as a minimum security stance, and disable SQL credentials even for Azure SQL instances.
As you say, Fabric SQL databases don't even support SQL credentials out of the box for that very reason. If we're not careful we'll end up with a K2 product with no connectivity whatsoever.
Th latest feedback I have had is that K2 support for Entra isn't coming any time soon, which leaves me with having SQL in Azure using SQL credentials at risk and at an additional cost.