Joseph hi,
great question, and thanks for bringing this up ))
unlike traditional on prem shares, azure files requires active authentication before it even lets u see the drive. its not just about checking if the resource exists like u said. azure files is picky like that ))
the key difference? azure files uses smb 3.0 with identity based auth. this means it wont even show u a disconnected drive if u dont prove who u are first https://learn.microsoft.com/en-us/azure/storage/files/storage-files-identity-auth-active-directory-enable
aha, and about those logs u asked for? check azure storage analytics logs. they'll show u the auth attempts that failed silently. its different from regular file server logs, i know ))
make sure u enabled ad ds auth for azure files first (link above), use group managed service accounts if u can. they handle the auth automatically https://learn.microsoft.com/en-us/azure/storage/files/storage-files-identity-ad-ds-enable. For remote app users, consider azure ad join instead of pure gpo. works smoother in cloud setups.
worth looking into the mfa thing u did actually created a fresh auth token. thats why it suddenly worked! azure ad was like 'oh finally u proved its u' ))
As well check the ntfs permissions on the share itself. sometimes they block things silently too. this might help in other tools too always look for hidden auth requirements in cloud storage. they love doing that nowadays.
let me know if the gmsa route works for u..
rgds,
Alex