Sunshine Admin could you please try the below steps once to get issue resolved:
- Enable Entra ID Login
In Azure Portal → VM → Settings → Login with Microsoft Entra ID, make sure it’s turned ON.
- Verify Extension
Go to Extensions + applications.
Confirm AADLoginForWindows shows Provisioning succeeded.
If not, uninstall and reinstall the extension.
The AADLoginForWindows extension must install successfully in order for the VM to complete the Azure AD join process. This is a critical step to troubleshoot if you are unable to RDP Azure VM using AAD credentials.
Here you should see the AADLoginForWindows extension. The status of this extension must be Provisioning succeeded
If the AADLoginForWindows extension fails to install, you must always make a note of the exit code. The failed AADLoginForWindows extension should have the following exit codes.
- AADLoginForWindows extension fails to install with terminal error code ‘1007’ and exit code: -2145648574.
- AADLoginForWindows extension fails to install with Exit code: -2145648607
- AADLoginForWindows extension fails to install with Exit code: 51
Each of these exit codes have a unique solution. You can refer to this excellent AADLoginForWindows extension troubleshooting guide
- Assign RBAC Roles Azure Portal > Virtual machines > Access control (IAM) >Add >Add role assignment:
Add the below roles : Virtual Machine Administrator Login
Virtual Machine User Login

- Use Correct Login Format
For RDP, use:
AzureAD******@domain.com