@SC I heard back from the product team.
Currently, the best method for the customer to reliably detect file modifications in Azure File Share is by enumerating all the files and tracking the etag version. The etag should be updated whenever a file is changed, which can serve as an indicator of modifications.
Unfortunately, there isn't a built-in alert feature via the Azure portal for this specific requirement yet, as it necessitates a change notification feature in Azure Files, which we are in the process of implementing.
If you have further questions, let me know in the comments.