Hey guys, I was confused about some of the prerequisites to get this working, and reached out to microsoft. Turns out you do need to be in an hybrid Azure AD environment for this to work. I don't know if anyone else was confused about that, but I sure was. Here is the email I received from Microsoft support abut getting this silent config set up:
Thank you contacting Microsoft,
I checked for the issue and below are few steps provided by our senior resources.
There are 3 points to this
First you have to prep your AD environment so that domain joined Windows 10 devices know where to look for your tenant. To do this I needed to create a Service Connection Point using the Initialize-ADSyncDomainJoinedComputerSync PowerShell on the AD Connect server.
https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdocs.microsoft.com%2Fen-us%2Fazure%2Factive-directory%2Fdevice-management-hybrid-azuread-joined-devices-setup&data=02%7C01%7Cv-kanala%40microsoft.com%7C011208d46e254d3fdfb808d562702343%7Cee3303d7fb734b0c8589bcd847f1c277%7C1%7C0%7C636523156123984720&sdata=pfMZGw1lXWe9zTpoIZfhrz6kemo9c28d8Pyfd%2F8Occ0%3D&reserved=0
Next you need to synchronise the OU or OUs that contain the devices you would like to auto register in Azure AD. I did this by modifying synchronization options in AD Connect. After it has synchronised the changes check Azure AD for the device, it should show as Hybrid Azure AD Joined.
Finally, you roll this out by setting Register domain joined computers as devices through GPO against the devices you are joining.
Restart your test device and log on with your domain credentials. To verify check the User Device Registration event log.
If the other settings that apply to OneDrive Silently Configure are in place the OneDrive client should now automatically log on.
However, there was one last thing I needed to do to get it working! As I had logged onto the machine before I made these changes I needed to reset a registry key, as Silently Configure will only try once. HKCU\Software\Microsoft\OneDrive\ClientEverSignedIn change from 1 to 0.
I hope you find this helpful, I had to learn all this by myself.
So it looks like Azure Connect has to be able to sync a list of windows 10 devices on your domain to Azure AD which then automatically registers those devices to your tenant which THEN allows you to automatically configure those devices OneDrive accounts because the devices has already been registered.