Hi @Lakshmi,
Thanks for contacting Microsoft Q&A platform.
try creating your Host Pool first without creating Session Hosts. Then do the following:
- Navigate to Host Pool -> Select the Hostpool where Azure AD joined VMs are located.
- Click on RDP properties.
- Click on … button and select Advanced button.
- Enter targetisaadjoined:i:1 as the last custom properties and click Save.
Once this is done, go back in and create your Session Hosts in AVD as AAD-joined devices. You can follow below blog post here which may help:
https://michaeldurkan.com/2022/05/17/100daysofcloud-day91-azurevirtualdesktopdemo-part1/
Hope this helps you.