I am practising for the first time to setup AVD solution and I decided not to setup AD DS at all. So I created manually all components necassarry in Azure and host session pool has 2 VMs created, registered to AzureAD and in Intune successfully. Users are assigned via AAD group to use these VMs. User can login to the web console, see the available resource, but when selecting, I get this:
I have ensured that password for user is correct. MFA is also been disabled as a test.
EDIT: If I try to login with AVD client (msi installation), I get little different error: "your account is configured to prevent you from using this device"