actually there a some questions regarding this email, so I am trying to give a short answer here - as a short summary from the other threads...
Customers who have registered for Microsoft.SQL will receive these notifications, Even though if the customer did not create the Azure SQL DB they receive it due to the Microsft.SQL is registered for the subscription.
it's a general notification to existing SQL Database users to transition the new APIs by October 2025
easiest way to get around this "issue" will be updating the SDK to a newer version (after mid of 2022)
there will be coming up more details on this retirement in the next few weeks => here: https://learn.microsoft.com/en-us/rest/api/sql/retirement
You could use this query to find out more on your usage:
HttpIncomingRequests
| where TIMESTAMP > ago(1d)
| where targetResourceProvider == 'MICROSOFT.SQL'
| where subscriptionId == 'xxxxxxxxxxxx'
| where apiVersion == "2014-04-01" or apiVersion == "2014-01-01" or apiVersion == "2014-04-01-preview"
and regarding your question... you don't have to update your Azure SQL database... it is all about the SDK which is used in application which are connecting to the database.