Is the usage of Proximity Placement Groups for Azure Scale Sets in Pulumi dependent on the Terraform provider implementation?

Not quite sure what you mean here - do you mean are we dependant on the Terraform provider having support for it?

correct

then yes, we require that to be the case. We (currently) generate our schema based on the upstream terraform provider

thanks, I figured as much. looks like that feature is on the way there soon

👍