I checked with internal team on this now. No this hasn't changed.
As of today user identities need to exist locally in both AD (AD DS or AAD DS) and AAD.
Currently in preview is AADJ which removes the need for AD. But this does not yet have support for B2B/C on the immediate roadmap.
However, team has a backlog item which should follow the first 3 milestones for AADJ. There is no timeline that can be shared on this now.
Hope this helps.
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