Hi Sean,
I hope you’re doing well.
Microsoft Entra is a hybrid identity and access management solution. While certain features can be managed within Microsoft Entra itself, when it is integrated with an on-premises environment, some features must be managed through Active Directory Domain Services (AD DS).
As a result, Microsoft Entra is not entirely managed by Microsoft, as part of its functionality depends on the on-premises setup.
I hope this helps clarify any confusion. Please feel free to reach out if you have any further questions or need additional information.