If your system or application contains privacy data at rest – does your system encrypt this data, if so please elaborate on what type of encryption is used and how.

Azure SQL Database transparent data encryption helps protect against the threat of malicious activity by performing real-time encryption and decryption of the database, associated backups, and transaction log files at rest without requiring changes to the application. TDE encrypts the storage of an entire database by using a symmetric key called the database encryption key. In SQL Database the database encryption key is protected by a built-in server certificate. The built-in server certificate is unique for each SQL Database server. If a database is in a GeoDR relationship, it is protected by a different key on each server. If 2 databases are connected to the same server, they share the same built-in certificate. Microsoft automatically rotates these certificates at least every 90 days. For a general description of TDE, see Transparent Data Encryption (TDE).