Thank you for following up on this!
Error Message:
Device is not in required device state: {state}. Conditional Access policy required domain joined device, and the device is not domain joined.
From the error message within your screenshot, I was able to find a related issue and it looks like the problem could be related to the Primary Refresh Token (PRT) not being present.
In order to troubleshoot this issue further, I'd recommend working with our support team on this since we'll have to take a closer look at your logs and network traces in order to determine the root cause. For more info - Troubleshoot post-join authentication issues.
Can you please email me with the info below, I'll go ahead and enable a one-time free technical support request for your subscription so you can work with our support engineers to get this issue resolved.
Thank you for all of your time and patience throughout this issue!