Windows 365 now supports (Dec 2022) the creating of Azure AD Cloud PCs that use single sign-on. Previously this required a dual-sign in step.
This is a big improvement, and now means users only have to logon once to the Windows 365 Cloud PC app – from here on in, their CloudPC desktops will seamlessly sign-in (subject to any specific conditional access polices you may have applied of course.) It even works with passwordless sign-on . You can see the user experience below.
Enabling the SSO setting
To enable SSO, administrators can update their existing Cloud PC provisioning profiles or create new Cloud PC policy with the “single sign on” setting enabled.
Note: Existing Cloud PCs will not automatically support SSO – these will need to be re-provisioned, which can be done from the device pane in endpoint manager as show below.