@tjb1966 Thank you for providing the detailed description of the issue, As I understand you are trying to achieve SSO (no need to provide credentials again when accessing the file share) from a client machine is joined to Azure AD and the File Share to AADDS.
This is not possible, Azure AD uses mordern (OAUTH, OID, SAML, etc) protocols while AADDS uses legacy (NTLM and Kerberos), when the user logs in to the machine, he gets a Modern token and to access the file share, he needs a legacy one,this is why they need to provide the user/password again.
Also, refer to this documentation https://learn.microsoft.com/en-us/azure/storage/files/storage-files-active-directory-overview#how-it-works:~:text=file%20shares.-,Azure%20AD%20DS,-For%20Azure%20AD it says For Azure AD DS authentication, you should enable Azure AD DS and domain-join the VMs you plan to access file data from. Your domain-joined VM must reside in the same virtual network (VNET) as your Azure AD DS.
Let me know if you have any further questions, feel free to post back.
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