Cannot login to AVD VM with EntraID username

Hope someone can help shine a light here... I provisioned a a few Windows 11 VMs on Azure; and created them natively Azure joined (AD is not an option, only ADD here). I can see that the Extensions blade that addLoginforWindows is enabled/ installed. I added the Virtual Machine Admin Login role and added my account to the RG. I can see all the settings are right, but when I try to RDP using my ADD UPN is saying login failure. I then logged in to the VM with a local user and I verified is ADD joined there. What am I missing?