@Raghava Sai Akula Thanks for posting your question in the Microsoft Q&A forum.
Integrated authentication relies on an Active Directory (Windows) domain that is federated to AAD. It does not work on machines that are joined to Azure Active Directory tenants. This is an AAD requirement. If you want this to work, you will need to configure the VM on a Windows domain and federate to AAD.
Regards
Geetha