Another use case I see in the field. For Remote Apps aka Published Applications you can use Azure Virtual Desktop and for persistent desktops (aka Full clones) you can use the Windows 365 Cloud PC.
Summary: Non-persistent Desktop - AVD Remote Apps - AVD Persistent Desktop - Windows 365 Cloud PC
You can argue I can do persistent desktops with AVD too. (personal), but CIO/CFO's like predictable fixed cost instead of fluctuating cost in AVD.
For us, we offer both and is dependant on what our users need.
If its for regular use (all day 5 days a week) and a standard config then we look to provision W365, if its for irregular use or a specialist config (ie 64gb ram. 32 vCPU etc) then we would look to provision something in AVD.