Unable to log in to Azure VM with Entra ID

Michael Sheridan 0 Reputation points
2025-10-31T00:13:48.0566667+00:00

Issue: Cannot connect to Azure Virtual Desktop session hosts with Entra ID accounts. Authentication fails with "Sign in failed" error.

Setup:

  • Personal Host Pool with Windows 11 Enterprise session host
  • Entra ID-only (cloud-only, no hybrid identities)
  • Session host shows all health checks passing
  • VM successfully joined to Entra ID (verified with dsregcmd)

What Works:

  • Local admin account can connect successfully
  • AADLoginForWindows extension installed and provisioned
  • All required services running (RDAgent, TokenBroker, wamweb)
  • Users assigned to Application Group and have VM login roles
  • NSG allows outbound internet traffic

What Fails:

  • Any Entra ID user account authentication fails immediately
  • Windows Event Viewer shows Event ID 4625:
    • Error: 0xC0000064 (STATUS_NO_SUCH_USER)
      • Authentication Package: NTLM (not Azure AD)
      • Same failure in Remote Desktop app and web client
      • Affects all Entra ID accounts, not just one user

Question: Why is the VM using NTLM instead of Azure AD authentication? How do I enable proper Entra ID authentication for AVD?

Microsoft Security | Microsoft Entra | Microsoft Entra ID

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