Hi PaulAzure-8925,
If you're looking to use AD to communicate between an Azure App Service and Azure SQL, the suggested security solution is to use a managed identity linked to the Azure App Service. This is a custom identity that is automatically managed for your App Service, and then you grant permissions so that identity can be used to access Azure SQL. You can configure everything through the Azure Portal, PowerShell or CLI and the identity's life cycle is automatically managed for you. You can check out these links to get started:
What are managed identities for Azure resources?
Tutorial: Secure Azure SQL Database connection from App Service using a managed identity
Outside of using a managed identity, Azure SQL does support Azure Active Directory Authentication but I do not believe it supports Certificate based Auth.
Azure SQL Database and Azure Synapse access control: Authentication
I hope that helps!