You have an Azure SQL Database logical server named Server1 that contains multiple databases.

Microsoft Entra-only authentication at the logical server level disables SQL authentication for all databases on that server while leaving existing SQL principals in place. That matches the requirement to deny SQL authentication without removing legacy logins. Creating external-provider users adds Entra users; it does not block SQL logins. Conditional Access can govern Entra sign-ins but cannot disable SQL authentication. SQL Server Contributor is an Azure management role, not an authentication mode. The exam objective emphasizes practical identity enforcement rather than cosmetic configuration. A valid answer must identify who authenticates, what permission is granted, where the scope is applied, and whether the method continues to work without passwords or secrets. That is why the selected answer is preferred over broader administrative roles or unrelated access settings. The result is a direct exam-style implementation choice: it changes the required security behavior without relying on unrelated monitoring, manual cleanup, or excessive privilege. Official Microsoft source/topic: SC-500 Study Guide > Azure SQL platform security; Microsoft Learn > Microsoft Entra-only authentication.

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