A Microsoft desktop and app virtualization service that runs on Azure. Previously known as Windows Virtual Desktop.
Start by verifying that the requirements listed at https://learn.microsoft.com/en-us/azure/virtual-desktop/authentication#external-identity are satisfied. If so, focus on the B2B guest access and tenant context. For the guest, verify Microsoft Entra ID → External Identities → Cross-tenant access settings in the tenant that owns AVD. Confirm that inbound B2B collaboration from the guest's home tenant is allowed. Also check Conditional Access policies that apply to Guest or external users, particularly policies requiring MFA, authentication strength, compliant devices, or other conditions.
The other key area is the AVD tenant context. The guest authenticates with their home-tenant credentials, while the AVD resources are in your tenant. After authentication, the guest would access the AVD service in the context of the tenant that owns the AVD deployment. Test with the current Windows App/web client and explicitly select or switch to the organization that owns the AVD environment if the client presents that option.
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hth
Marcin