The documentation online only shows using a Sql Authenticated login or Entra authenticated login. A much better approach would be to lean into the new managed identities to worry much less about credential rotation and management.
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Mirroring from Azure SQL Database will also work with Service Principal Name (SPN) and Fabric Workspace identity. Documentation has been updated - Tutorial: Configure Microsoft Fabric Mirrored Databases From Azure SQL Database - Microsoft Fabric | Microsoft Learn
