Windows 11 AppVM seems to hang after joining the device to Azure AD

I have a Windows TemplateVM that I’ve installed Windows 11 Enterprise on using a local Admin account. I’ve created an AppVM based on this TemplateVM, and I’m trying to join my Azure AD. It seems to work, then hangs up at the “Setting up for work or school” screen.

Do I need to do this in the TemplateVM? Is there something else I might need to do to make this work?

Update: I tried this in the TemplateVM, and it still appeared to hang after joining, but it got passed the device setup screen and hung after logging in with my AAD account, at the point of setting up the Windows Hello PIN. I rebooted and logged in and it let me skip creating a PIN. So, it appears to be working in the TemplateVM (joined to AAD, logged in with AAD account, enrolled in Intune).

Questions remaining:

  1. Can this be done in the AppVM vs. TemplateVM?
  2. Why does it hang at the Windows Hello step?