Getting started with Windows Virtual Desktop

It's been a while that I have commented on this conversation thread. Since Windows Virtual Desktop has gone GA, our consulting team has implemented it in a couple of production environment for our clients. Let me tell you that the feedback from the clients have been amazing. So bravo PieterWigleven  Michael Niehaus  and Windows Virtual Desktop product team for this.

Recently, we have come across an issue within the WVD environment. It is auto sign-in of OneDrive using ADAL.

The Scenario where we are having this issue where the WVD desktop environment is joined to our on-premise Active Directory domain.

These are things we have done to enable auto sign-in for OneDrive using ADAL:

1. We have configured a group policy to enable ADAL for OneDrive. the policy settings are:

2. All our user accounts including the test account has a M365 E3 license assigned

3. All our user accounts including our test account are on-premise AD accounts that are synchronized between AD and AAD using AAD Connect (Password hash synchronization)

but ADAL doesn't work and OneDrive doesn't auto sign-in for users. 

We have logged a couple of tickets with Microsoft and after weeks of to and fro conversations and troubleshooting, they have come back saying that it is by Design (I.e.  "Windows Virtual Desktop environment, ADAL configured with the above configuration (1, 2 and 3) is not supported" and if you want this auto sign-in configured, you will either use Hybrid AD join scenario or federation). I have asked for any Microsoft docs links that mentions that but they have failed to provide any. 

I know that this question is not directly related to the configuration of WVD and I apologies for it but more and more people will face this issue once they have implemented WVD in production environment and therefore, i request PieterWigleven  Michael Niehaus and the WVD team to look into this issue and see what they think.

Thanks in advance and High Regards

Shehzad