I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "[The question author cannot accept their own answer. They can only accept answers by others] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#why-only-one-accepted-answer)**)", I'll repost your solution in case you'd like to "[Accept] (https://docs.microsoft.com/en-us/answers/support/accepted-answers#accepted-answer-in-a-question-thread)**)" the answer.
As per your solution you used the credentials as "user@domain.example" instead of "DOMAIN\user".
It is always recommended to use the credentials as "user@domain.example" instead of "DOMAIN\user" while working with Azure AD domain services. Azure AD DS always recognizes the user account in the format of "user@domain.example".
Please "Accept the answer" if the information helped you. This will help us and others in the community as well.