Hi tharushi shehara,
I Understand the main issue seems to be related to the authentication process when trying to connect to the Azure file share from a non-domain joined device, you are already made significant progress in troubleshooting this issue. I Suggest a few more steps you might consider,
Ensure that the non-domain joined device can resolve the Fully Qualified Domain Name (FQDN) of the Azure file share. Sometimes, DNS resolution issues can cause authentication failures, When connecting from a non-domain joined device, make sure you are providing explicit credentials in the format username@domainFQDN
Double-check that there are no network restrictions or firewalls blocking the connection between the non-domain joined device and the domain controllers, Verify that the user account you're using has the necessary permissions to access the Azure file share. Sometimes, share-level permissions might not be correctly configured
Use the AzFileDiagnostics tool to validate the client environment and identify any potential issues
For more information,
https://learn.microsoft.com/en-us/troubleshoot/azure/azure-storage/files/security/files-troubleshoot-smb-authentication?tabs=azure-portal
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If you have any other questions or are still running into more issues, let me know in the "comments". We will be glad to assist you further.