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Typically, issues signing in to a VM using Entra ID are related to Multi-Factor Authentication (MFA) being enforced through per-user MFA settings, Security Defaults, or Conditional Access policies.
You can refer to the following documentation to verify and manage the MFA status: Change the status for a user - Microsoft Learn
During our call, we observed that per-user MFA was enabled for your account. As per standard procedure, we disabled it; however, the sign-in issue persisted.
Upon further investigation, we found that Security Defaults were enabled in your tenant. While Security Defaults typically do not affect non-admin users signing into a VM, they do require Global Administrators to complete MFA. Since your account has the Global Administrator role assigned, MFA is still being enforced due to Security Defaults.
To work around this, we created a new Global Administrator account and a backup admin account, then removed the Global Administrator role from your main account. This allows you to sign in to the VM without being prompted for MFA.