@Om Nath If you wish to use SMB 2.1 you need to disable secure transfer for the storage account. You can use the below PowerShell
Set-AzStorageAccount -Name "{StorageAccountName}" -ResourceGroupName "{ResourceGroupName}" -EnableHttpsTrafficOnly $False
Require secure transfer to ensure secure connections
After disabling the you can check for the status using rest API (File Services - Get Service Properties)
Additional information: You can disable encryption in transit for an Azure storage account. When encryption is disabled, Azure Files will also allow SMB 2.1 and SMB 3.x without encryption. The primary reason to disable encryption in transit is to support a legacy application that must be run on an older operating system, such as Windows Server 2008 R2 or older Linux distribution. Azure Files only allows SMB 2.1 connections within the same Azure region as the Azure file share; an SMB 2.1 client outside of the Azure region of the Azure file share, such as on-premises or in a different Azure region, will not be able to access the file share.
SMB versions: Which versions of SMB are allowed. Supported protocol versions are SMB 3.1.1, SMB 3.0, and SMB 2.1. By default, all SMB versions are allowed, although SMB 2.1 is disallowed if "require secure transit" is enabled, since SMB 2.1 does not support encryption in transit.