I have successfully setup a Linked Service in Azure Data Factory that uses a Key Vault for the connection string which includes the user/pwd and connects to the Azure SQL DB as desired. However, I can only do this when I use the "admin" account. The string below works.
Server=tcp:database1.database.windows.net,1433;Initial Catalog=DB;Persist Security Info=False;User ID=Admin;Password=Pa$$w0rd;MultipleActiveResultSets=False;Encrypt=True;TrustServerCertificate=False;Connection Timeout=30;
I created a new login/user and granted the necessary permissions. I know because I can connect using the new login via remote SSMS or by adding the credentials directly in the linked service in Azure. (e.g. hard coding the user/pwd in the connection string in the linked service)
Unfortunately, when I switch to using the key vault connection string, I get the generic SQLErrorNumber 18456 for the newly created user. I know the credentials are correct, I know I can connect via the Key Vault (when using the elevated admin account), I just cannot use the Key Vault connection string when using the new user.
Server=tcp:database1.database.windows.net,1433;Initial Catalog=DB;Persist Security Info=False;User ID=Username;Password=Pa$$w0rd;MultipleActiveResultSets=False;Encrypt=True;TrustServerCertificate=False;Connection Timeout=30;