I have the following recommendation from Microsoft Defender for Cloud
Adaptive application controls for defining safe applications should be enabled on your machines
I did go through the article - https://charbelnemnom.com/enable-adaptive-application-controls-in-azure-security-center and understood.
I want to enable this through Terraform rather than manually. I'm not sure where to begin.
There is another approach to enable Adaptive Application Control (AAC) for Azure VM's using Azure built in Policy.
Adaptive Application Control (AAC) is a feature of Azure Policy that allows you to control which applications are allowed to run on Azure Virtual Machines. Enabling AAC requires creating and assigning a default policy definition for the feature. like below.
Azure Portal > Policy > Definitions.
ARM Template.
Assign the policy to scope level, like below.
Assign the built in Azure Policy by using Terraform. Like below.
You can fetch the Policy Definition ID, like below.
Referance: Create a policy assignment to identify non-compliant resources using Terraform.