Hi folks, thanks for the interest here. There are 2 workstreams in progress here: take the existing preview for synced users to GA and enable support for cloud-only users.
Synced users:
We are close to updating the public preview of Azure Files + Azure AD Kerberos to make it a lot easier to deploy and maintain. This updated preview will also be made available outside of Azure Virtual Desktop to enable additional storage scenarios. This is beneficial to companies who already have an ADDS on-prem, synced to Azure AD but who don't want to expose the AD to the internet and thus, have no line-of-sight from the session hosts. It allows them to start leveraging AADJ VMs today.
Cloud-only users:
Support for cloud-only users is critical for all the reasons mentioned above and in the earlier linked blog post. It's a high priority for the team and is in active development across different teams. However, it's a large change, including changes in Windows itself and will take some time so I don't yet have a timeframe to share. We'll post here as soon as we have more information that can be provided.