"Your account control strategy should rely on identity systems for controlling access rather than relying on network controls or direct use of cryptographic keys" - Microsoft Well Architected framework Security pillar
- Create Azure SQLServer and database, only allow AAD auth
- Set AAD admin, preferably a group account and add whoever needs admin access
- Set firewall rules
- Test connection with e.g. SSMS using AAD - universal with mfa login
- Create a table ('test' is used here)
- Create function app, http triggered VS 2022, copy code from here