Add the AZD_TEMPLATE parameter in the configuration. When the value is enable, azd template logic will be used when configuring SQL Server, otherwise locally logic will be used.

infra/main.bicep

@@ -60,6 +60,7 @@ module web './core/host/appservice.bicep' = {
       AZURE_SQL_CATALOG_CONNECTION_STRING_KEY: 'AZURE-SQL-CATALOG-CONNECTION-STRING'
       AZURE_SQL_IDENTITY_CONNECTION_STRING_KEY: 'AZURE-SQL-IDENTITY-CONNECTION-STRING'
       AZURE_KEY_VAULT_ENDPOINT: keyVault.outputs.endpoint
+      AZD_TEMPLATE: 'enable'
     }
   }
 }