This is not supported unless your Entra tenant is integrated with either Active Directory (via Connect/Cloud sync) or with Entra Domain Services
Details at https://learn.microsoft.com/en-us/azure/storage/files/storage-files-active-directory-overview
Supported scenarios
- On-premises AD DS authentication: On-premises AD DS-joined or Microsoft Entra Domain Services-joined Windows machines can access Azure file shares with on-premises Active Directory credentials that are synched to Microsoft Entra ID over SMB. Your client must have unimpeded network connectivity to your AD DS. If you already have AD DS set up on-premises or on a VM in Azure where your devices are domain-joined to your AD, you should use AD DS for Azure file shares authentication.
- Microsoft Entra Domain Services authentication: Cloud-based, Microsoft Entra Domain Services-joined Windows VMs can access Azure file shares with Microsoft Entra credentials. In this solution, Microsoft Entra ID runs a traditional Windows Server AD domain on behalf of the customer, which is a child of the customer’s Microsoft Entra tenant.
- Microsoft Entra Kerberos for hybrid identities: Using Microsoft Entra ID for authenticating hybrid user identities allows Microsoft Entra users to access Azure file shares using Kerberos authentication. This means your end users can access Azure file shares over the internet without requiring network connectivity to domain controllers from Microsoft Entra hybrid joined and Microsoft Entra joined VMs. Cloud-only identities aren't currently supported.
- AD Kerberos authentication for Linux clients: Linux clients can use Kerberos authentication over SMB for Azure Files using on-premises AD DS or Microsoft Entra Domain Services.
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hth
Marcin