Hello @Mytoast Admin,
Thank you for posting your query on Microsoft Q&A.
Based on your description, I understand that you are trying to set up NPS and RADIUS authentication with Microsoft Entra ID, but you don't have an on-premises Active Directory and are looking for alternative methods to configure this without it.
Unfortunately, it is not possible to configure a Network Policy Server (NPS) as a RADIUS server without an on-premises Active Directory. The NPS server role must be installed on an on-premises AD, and users must be synced to Microsoft Entra ID to enable multi-factor authentication with RADIUS-based systems. This is done by installing the Microsoft Entra multi-factor authentication NPS extension on the Windows NPS server.
For more information, please refer to the following documents:
NPS Extension for Multi-Factor Authentication
RADIUS Authentication with Entra
How to Configure NPS Extension with RD Gateway
I hope this information is helpful. Please feel free to reach out if you have any further questions.
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Thanks,
Raja Pothuraju.