Greeting!
Azure SQL Database and Azure SQL Managed Instance are always using the latest SQL Server engine available, which right now is the last version of SQL Server 2022.
This is documented here: https://video2.skills-academy.com/en-us/azure/azure-sql/database/sql-database-paas-overview .
Azure SQL Database is always running on the latest stable version of the SQL Server database engine and patched OS with 99.99% availability .
Azure SQL Database is based on the latest stable version of the Microsoft SQL Server database engine. You can use advanced query processing features, such as high-performance in-memory technologies and intelligent query processing. .
In fact, the newest capabilities of SQL Server are released first to SQL Database, and then to SQL Server itself. You get the newest SQL Server capabilities with no overhead for patching or upgrading, tested across millions of databases
But In Azure SQL PaaS services we don't report the same version/build. We currently report version "12.0.2000.8" (v12). This is done mainly to preserve backwards compatibility with the previous Azure SQL Database version (v11), and also, the versioning does not follow the same line as the SQL Server Box Product versions. Azure SQL Database has its own version line and we are in v12 now. The version and ProductVersion properties are returning the correct value (12.0.2000.8).
Regards
Geetha