In general, this actually should work - as per https://learn.microsoft.com/en-us/entra/identity/devices/device-sso-to-on-premises-resources
However, review the following section of the aforementioned document:
What you should know
- You may have to adjust your domain-based filtering in Microsoft Entra Connect to ensure that the data about the required domains is synchronized if you have multiple domains.
- Apps and resources that depend on Active Directory machine authentication don't work because Microsoft Entra joined devices don't have a computer object in AD DS.
- You can't share files with other users on a Microsoft Entra joined device.
- Applications running on your Microsoft Entra joined device may authenticate users. They must use the implicit UPN or the NT4 type syntax with the domain FQDN name as the domain part, for example: ******@contoso.corp.com or contoso.corp.com\user. If applications use the NETBIOS or legacy name like contoso\user, the errors the application gets would be either, NT error STATUS_BAD_VALIDATION_CLASS - 0xc00000a7, or Windows error ERROR_BAD_VALIDATION_CLASS - 1348 “The validation information class requested was invalid.” This error happens even if you can resolve the legacy domain name.
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hth
Marcin