I am trying to use h2 in-memory db from my spring boot application, my spring boot version is 3.1.10, but its not connecting to h2 properly

Question

spring.datasource.platform=h2
spring.datasource.url=jdbc:h2:file:~/DemoDb
spring.datasource.generate-unique-name=false
spring.datasource.driverClassName=org.h2.Driver
spring.datasource.username=sa
spring.datasource.password=
spring.jpa.database-platform=org.hibernate.dialect.H2Dialect
spring.jpa.show-sql=true
spring.jpa.hibernate.ddl-auto=update
spring.h2.console.path=/h2-console
spring.h2.console.enabled=true
server.port=8181

I read that in spring versions 3 onwards, it does not takes spring.datasource.url, rather a random instance of db comes while launching spring boot app, but its not showing up in logs, so I am also suspecting that Intellij is not taking application.properties into account at all, so I tried deleting .idea and re-opening the IDE, but it didnt helped. Kindly help me out to fix the issue.