@James Firstly, Apologies for the delay response! Welcome to Microsoft Q&A Forum, Thank you for posting your query here!
Can you reset the existing user password (make sure AD connect sync also runs after the password change) and try again to connect.
Might be missing RBAC SMB permissions in Azure.
Some applications run in the context of the network service, or another system service or account. When accessing the file share, these services or processes "act as the computer on the network", meaning that it has the SID and identity of the computer identity. Windows Defender is an example of a system process that accesses file shares via the computer account.
Azure Files Active Directory integration decides share access based on Azure RBAC permissions set via Portal or PowerShell. Because these computer accounts have no corresponding RBAC identity, they cannot have a share permission defined for them.we return "logon failure" error.
Under the Synchronization settings menu for Azure AD Domain Services. You can then change the scope from 'Scoped' to 'All': https://learn.microsoft.com/en-us/azure/storage/files/storage-files-identity-auth-active-directory-domain-service-enable
You need to allow the RC4 cypher. If you have deployed CIS benchmarks Level 1 for AD in the domain it will disable RC4 and cause this issue too.
Please let us know if you have any further queries. I’m happy to assist you further.
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