Issue connecting Azure VM using Azure AD from our laptop

Azure AD has been configured and we are able to login to the Azure VM from another Azure VM using the AD credentials but it is getting failed when we try to connect using our local laptop.

One of the prerequisites is to make sure the local laptop should show AzureAdJoined: YES but still having issues and the error it failed is ” The logon attempt failed”.

After a few searches, identified the issue because the local GPO applied to the laptop.

Specifically, this is called out in the doc for AAD Login to Windows VMs here: https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdocs.microsoft.com%2Fen-us%2Fazure%2Factive-directory%2Fdevices%2Fhowto-vm-sign-in-azure-ad-windows%23unauthorized-client&data=04%7C01%7Cganesh.sekarbabu%40autodesk.com%7C55dd7cf7be69410046df08d9ec6b867c%7C67bff79e7f914433a8e5c9252d2ddc1d%7C0%7C0%7C637800768829024410%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=h7Fz%2Fpi%2BaS3ueSHA8yG6o3YJO%2BYXwbLDTrbm4BKPh0Q%3D&reserved=0

Here’s the doc for that particular setting: https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fdocs.microsoft.com%2Fen-us%2Fwindows%2Fsecurity%2Fthreat-protection%2Fsecurity-policy-settings%2Fnetwork-security-allow-pku2u-authentication-requests-to-this-computer-to-use-online-identities&data=04%7C01%7Cganesh.sekarbabu%40autodesk.com%7C55dd7cf7be69410046df08d9ec6b867c%7C67bff79e7f914433a8e5c9252d2ddc1d%7C0%7C0%7C637800768829024410%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=EVGjUlfqmjNsWnDIAmyc9Ypr9D2cAeibY%2BD1LmqVzjc%3D&reserved=0

https://techbrainblog.com/2022/08/12/issue-connecting-azure-vm-using-azure-ad-from-our-laptop/