My question would it be possible to sync users from Azure AD to freshly installed Server 2022 or the only way is to export users from Azure AD, then create them on local AD and run sync ?
No it's not possible because write back user is not supported.
In this case you have to create users on local AD and sync them to Entra ID using Entra connect or Cloud Sync.
Another question - only feature I do require at the moment is password sync, no intune is planed, what would be your recommendation - entra connect sync or entra cloud sync?
If you need only sync password hash ,in this case it's recommended to use Cloud Sync because it will eventually replace Entra Connect in the future.
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