To enable Microsoft Entra users to sign in to a Windows Server Azure virtual machine (VM), you must install the AADLoginForWindows VM extension. The Set-AzVMExtension PowerShell cmdlet is the correct tool for adding or updating extensions on an Azure VM. By specifying the correct publisher, type, and name for the Microsoft Entra login extension, this cmdlet configures the server to authenticate users against Microsoft Entra ID, thereby fulfilling the requirement.

A. Add-ADComputerServiceAccount: This cmdlet is for managing service accounts within an on-premises Active Directory Domain Services (AD DS) environment, not for configuring Microsoft Entra authentication on a server.
B. Set-AzVM: This cmdlet modifies the core properties of an Azure VM, such as its size or attached disks. It does not install or manage VM extensions, which are required for this functionality.
D. New-ADComputer: This cmdlet creates a new computer object in an on-premises Active Directory domain. It is irrelevant to configuring authentication methods on an existing server.

1. Microsoft Learn

Log in to a Windows virtual machine in Azure by using Microsoft Entra ID. This official documentation explicitly provides the PowerShell command to enable this feature.

Reference: Under the section "Enable Microsoft Entra login in for Windows Server 2019 or later

" the "Azure PowerShell" tab shows the exact command: Set-AzVMExtension -ResourceGroupName -VMName -Name "AADLoginForWindows" ...

2. Microsoft Learn

Set-AzVMExtension (Az.Compute). This is the official cmdlet reference page

which describes its purpose.

Reference: The "Description" section states

"The Set-AzVMExtension cmdlet adds a virtual machine extension to a virtual machine or updates an existing virtual machine extension." This confirms its role in managing extensions like the one required for Entra login.