Can Fabric connect to an Azure SQL Virtual machine?

Hi, you could install the Fabric on-premises data gateway on the virtual machine and add that gateway in the connection section of Fabric. In Fabric Data Factory, you can access that connection with a data pipeline. Documentation about setting this up can be found here: https://learn.microsoft.com/en-us/fabric/data-factory/how-to-access-on-premises-data

Ideally it is recommended to have a seperate server hosted within the same VNet as the SQL server and you set up the On Premises data gateway on the new server which would act as a bridge between Fabric data pipeline and your IaaS SQL server.

Note : It is not preferred to have the gateway in the same server as the database