Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hi Sam,
Hope all is well.
Seems the local AD is required to provide a domain for those cloud PCs to join, then the end users can remote to them after passing the authentication.
For the details, please refer to Windows 365 architecture
Meanwhile, we'd like to recommend you check Windows 365 Enterprise documentation to get all information about how to set up Windows 365 Enterprise.
Please do take care.
Regards,
Rudy