Merge pull request #33274 from nitinvbhartiM/patch-6

Update prerequisites.md

Author: prmerger-automator[bot]

docs/sql-server/azure-arc/prerequisites.md

@@ -107,6 +107,13 @@ If a proxy server is used, set the `NO_PROXY` environment variable to exclude pr
 - `localhost`
 - `127.0.0.1`
 
+> [!NOTE]
+> Beginning with extension version `1.1.2971.246`, you can set `NO_PROXY` environment variable to bypass proxy for URLs.
+> 
+> You can configure the extension to bypass the proxy endpoint for requests to specific URLs while using a proxy server for all other requests.
+> 
+> For example, you can configure the extension by setting `NO_PROXY` environment variable to use private endpoints for requests to Azure Key Vault, while all other requests use the proxy server.
+
 ### Connect to Azure Arc data processing service
 
 [!INCLUDE [data-processing-service-permission](includes/data-processing-service-permission.md)]