Hello Deepak Kumar,
Thank you for connecting with us offline.
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. When we checked Conditional Access policies, there is a policy requiring MFA, please make sure to exclude the "Microsoft Azure Windows Virtual Machine Sign-in" app (App ID: 372140e0-b3b7-4226-8ef9-d57986796201) from the targeted cloud apps.
This allows you to sign in to the VM without being prompted for MFA.
For reference, see this Microsoft Learn article: Sign in to a Windows virtual machine in Azure by using Microsoft Entra ID.
Hope this helps! Please feel free to reach out for any further queries.