Hello Bollapu vishnu Vardhan reddy3,
Welcome to the Microsoft Q&A and thank you for posting your questions here.
I understand that you are having issues with Azure Local AVD session hosts not visible.
In your explanation, this configuration is unsupported because the AVD service broker can only authenticate users against Entra ID and must be able to resolve those identities to session hosts registered in a trusted directory.
The only viable solution is to establish hybrid identity using Entra ID Connect to synchronize your on-premises Active Directory with Entra ID, creating a single trusted identity source. This requires first ensuring a reliable Site-to-Site VPN or ExpressRoute connection is in place between your on-prem network and the Azure VNet hosting your session hosts, with the VNet's DNS settings configured to use your on-prem domain controllers for name resolution - https://learn.microsoft.com/en-us/azure/virtual-network/virtual-networks-name-resolution-for-vms-and-role-instances
You must then install and configure Entra ID Connect on a server in your abc.local domain, specifically synchronizing the Organizational Units containing both your users and the session host computer objects - https://learn.microsoft.com/en-us/entra/identity/hybrid/connect/how-to-connect-install-custom
Once synchronized, you must assign users access using these synchronized identities via the Virtual Machine User Login role in IAM for the host pool or specific VMs. - https://learn.microsoft.com/en-us/azure/role-based-access-control/role-assignments-portal) and
It is critical to understand that this architecture introduces a dependency on your on-premises infrastructure for authentication; any disruption in network connectivity or the Entra ID Connect service will impact user sign-ins. For a proof-of-concept, this is the required path, but for production, consider the long-term resilience and management overhead of maintaining this hybrid identity dependency.
I hope this is helpful! Do not hesitate to let me know if you have any other questions or clarifications.
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