we use the following code to create private endpoint and on UI we can see the private endpoint connection status as approved.

resource "azurerm_private_endpoint" "example" {
  name                = "example-endpoint"
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name
  subnet_id           = azurerm_subnet.endpoint.id

  private_service_connection {
    name                           = "example-privateserviceconnection"
    private_connection_resource_id = azurerm_private_link_service.example.id
    is_manual_connection           = false
  }
}

After we disable public network access databricks provider is unable to add users/service principal to the azure daatbricks workspace.

@koushiknpvs