"username and password incorrect" error in the session host deployed with AVD Entra ID Joined

I am sharing the response I received from my request for support from Microsoft

• The eSTS BRS rollout was completed on Friday evening (12/01) to revert the feature rolled out on early October, which skipped writing the DPAPI encryption key to the old property.
• The remaining failures seem to be related to replication delays in MSODS, which is getting auto-mitigated after a while.
• ESTS provisions a DPAPI-enc key for AAD User via MsGraph and the update may take some time to reflect for DPX. After replication gets completed, the issue should stop occurring.
• For new users, the re-authentication prompt might be expected due to the usage of a temporary access pass (TAP) with one-time use only. The credential validity is limited, and a new re-auth needs to be performed with another valid credential after one-time use.
• No mitigation is required as the issue is getting auto-mitigated after a while. For new users, it is recommended to use a TAP that is not set as one-time, but rather time-bound, to avoid the re-authentication prompt.

It has been confirmed that the current problem symptom has been resolved