@Ayush Shrivastava Thank you for reaching out.
UserPrincipalName of the Microsoft Entra object for Microsoft Entra Users.
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CREATE USER [bob@contoso.com] FROM EXTERNAL PROVIDER;
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CREATE USER [alice@fabrikam.onmicrosoft.com] FROM EXTERNAL PROVIDER;
When creating the user in the Azure SQL database, the login_name must correspond to an existing Microsoft Entra login, or else using the FROM EXTERNAL PROVIDER clause will only create a Microsoft Entra user without a login in the master database.
Microsoft Entra server principals (logins) introduces creating users that are mapped to Microsoft Entra logins in the virtual master database. CREATE USER [bob@contoso.com] FROM LOGIN [bob@contoso.com]