Setting up cloud PC stucks at VSB_Policy_with_Microsoft_365_Apps

HansWalter 

Hello

You need to do some prerequisites configuration on Microsoft 365 Admin Center.

1. Before starting, make sure that your https://learn.microsoft.com/en-us/azure/active-directory/devices/device-management-azure-portal#configure-device-settings for Users may join devices to  Azure AD are set to All.

2. Make sure MDM authority configuration is set up correctly

If you have Intune license follow the Path A in the below link or if you have Microsoft Entra ID P1 or P2 subscription follow Path B, if you don't have any licenses from above three then follow Path B.

Note: Intune needs additional configuration of enrollment policy. if Path A is applied.

https://learn.microsoft.com/en-gb/windows-365/business/troubleshoot-windows-365-business#path-b-turn-off-automatic-mdm-enrollment-and-intune-enrollment-in-organization-settings

Once you make the changes wait for sometime, The Windows Cloud PC will be online then you can connect to it.

In my case I'm using Microsoft Entra ID P1 subscription, fixed the issue.

Thank you

Shoaib