This is an issue for Microsoft Remote Desktop for macOS version 10.9.4 (2161) and likely also earlier versions.
When adding a Windows user account to the 'Protected Users' security group in our domain as per - https://learn.microsoft.com/en-us/windows-server/security/credentials-protection-and-management/protected-users-security-group - I'm no longer able to connect. This is on a macOS 13.6.1 MacBook not currently joined to the domain.
I'm able to RDP connect fine from a Windows machine with that same user.
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TaniaMariscalMicrosoft
Status changed:NewtoClosedWe are sorry you are running into issues. To discuss issues we recommend to share your problem on our Tech Community forum (https://aka.ms/wvdtc) or open a support ticket after you have reviewed the troubleshooting options in our documentation (Windows Virtual Desktop troubleshooting overview - Azure | Microsoft Docs)
We recommend to review our troubleshooting section first. The other option you have is to open a support ticket through the Azure Portal.