Hello Jim Huang (RD-CN)
I was waiting to hear from you to understand if you have made in progress with this. Migrating FSLogix data from a local Active Directory (AD) to Microsoft Entra ID Domain Services can be challenging due to the differences in Security Identifiers (SIDs) between the two environments. When a user logs into a VM that is joined to Microsoft Entra ID, a new SID is generated, which means that the existing FSLogix profile data associated with the old SID will not be accessible.
Unfortunately, FSLogix does not provide a direct migration path for user profile data from traditional AD to Entra ID. The profiles are tied to the specific SIDs, and as you have discovered, simply copying the VHD file to the new SID folder will not work because the new VM cannot mount the FSLogix profile.
As I suggested earlier, to manage this situation, you may consider implementing a solution like OneDrive with known folder move, which allows users to save their data outside of their profile. For smaller use cases, you can use the frx command-line utility to help copy local profiles into a new VHD(x), but this would still require some manual intervention to ensure that the data is correctly associated with the new SID. Feel free to tag me in your comments for any question References: https://learn.microsoft.com/en-us/fslogix/overview-faq#containers
https://learn.microsoft.com/en-us/azure/virtual-desktop/prerequisites?tabs=portal#identity
If you would like further discuss this, please raise a technical support ticket with the AVD team.