SSH with AAD creds doesn't work on Linux VM in Azure (permission denied or timeout)

I'm following the instructions on https://learn.microsoft.com/en-us/azure/active-directory/devices/howto-vm-sign-in-azure-ad-linux
but cannot log in with my AAD creds. I created the VM with a username and password, not with an SSH cert. I keep getting:
Permission denied (publickey)
I cannot log in with my AAD account that has been given the "Virtual Machine Administrator Login" role. When I try via the Azure Cloud Shell, it just times out.
This works if I use the username/password set when the VM was created. If I generate an SSH key and use the "reset password" function on the VM, I can log in by passing my key files.
What am I missing? I've tried this with two different Linux VMs, created from scratch for this purpose.
Full details here: https://github.com/MicrosoftDocs/azure-docs/issues/106462
Hi, yes I already verified that the "PasswordAuthentication" setting in my ssd_config file is set to "yes." There are also settings in that file specifically added by Azure as labeled "# Added by aadsshlogin installer:"
If I comment the two publickey lines out and restart ssh, then I start to be prompted for a password when logging in, but this password never works.
The Virtual Machine Administrator Login role is assigned to my account.
Resetting the SSH public key and then logging int with an SSH key pair has always worked fine. But I want to log in via AAD, so this method is not a solution.
Hello anonanonanon
Firstly, apologies for the delay in responding here and any inconvenience this issue may have caused.
This issue needs deeper investigation. Support team will be able to check and help on this. I would recommend you to open a azure support case.