• SqlPackage.exe version: 162.0.52
• SqlServer version: Microsoft SQL Server 2019 (RTM-CU19) (KB5023049) - 15.0.4298.1 (X64)
• Target database compatibility level: 150

Steps to Reproduce:

1. Create an in-memory sqlproj, add a table with a couple of columns
2. Create function with options WITH NATIVE_COMPILATION, SCHEMABINDING which selects from this table
3. Deploy this project
4. Add a column to the table
5. Try to deploy modified project and get invalid syntax error

SqlPackage tries to behave like this is not memory optimized project and to be able to alter the table SqlPackage temporarily removes SCHEMABINDING option from dependent function. But natively-compiled functions must have SCHEMABINDING option, otherwise syntax is invalid.

Example of generated deployment script part (obfuscated):

GO
PRINT N'Removing schema binding from [my].[fn]...';

GO
ALTER FUNCTION my.fn
(@bar INT NULL)
RETURNS TABLE 
WITH NATIVE_COMPILATION  ---<<< this is illegal, it MUST have SCHEMABINDING option
AS
RETURN 
   SELECT t.id
   FROM dbo.altered_table AS t
   WHERE t.foo = @bar
GO
PRINT N'Altering Table dbo.altered_table...';

GO
ALTER TABLE dbo.altered_table
   ADD new_col INT NULL;

GO
PRINT N'Adding schema binding to my.fn...';

GO
ALTER FUNCTION my.fn
(@bar INT NULL)
RETURNS TABLE 
WITH NATIVE_COMPILATION, SCHEMABINDING
AS
RETURN 
   SELECT t.id
   FROM dbo.altered_table AS t
   WHERE t.foo = @bar
GO

So there are two things

• to add a column you don't need to unbind dependent objects, you can just do ALTER TABLE ADD
• removing SCHEMABINDING from NATIVE_COMPILATION objects is illegal, you need some other approach; like regenerating with fake body or something

Did this occur in prior versions? If not - which version(s) did it work in?
No version found where it works.

How we workaround this issue: we add column with ALTER TABLE ... ADD ... before deployment via sqlpackage.

ps
I don't really understand where I should report this issue. Here is a feedback on azure.com , here is a thread on stackoverflow, both are dead ends.

(DacFx/SqlPackage/SSMS/Azure Data Studio)