Entra & ADDS to access AzureFiles

Has anybody had a use-case with storage account(azure files) where Domain Joined machines and Entra AD machines need access, I have a situation now where i have enabled azure files with Entra Kerberos  

Entra joined machines like AVD's i have setup can all map the drives successfully but it prevents domain joined machines like on-prem servers accessing.. if i switch to the first option above in the screenshot above "ADDS" it has the opposite behavior.

According to the docs Microsoft Entra Kerberos for hybrid identities on Azure Files | Microsoft Learn the current setting above plus some config on the machines the AD Domain joined servers should still be able to authenticate  but it gives 

From those same machines that fail the storage access key works for mapping the drive, so network and dns are fine. Everything I've read suggests a conflict between Active Directory (AD) and Azure AD authentication mechanisms. but even forcing creds like "[name@domain.com]" it still fails.

the pre-reqs like ksetup commands etc. had been done but wondering if anybody has done this before or been in a similar situation before