Active Directory Federation Services is a feature and web service in the Windows Server Operating System that allows sharing of identity information outside a company's network.
Scenario: Technical Requirements include:
Prevent user passwords or hashes of passwords from being stored in Azure.
Topic 4, Contoso Ltd (Consulting Company)
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Overview
General Overview
Contoso, Ltd. is a consulting company that has a main office in Montreal and branch offices in Seattle and New York.
Environment
Existing Environment
Contoso has an Azure subscription named Sub1 that is linked to an Azure Active Directory (Azure AD) tenant. The network contains an on-premises Active Directory domain that syncs to the Azure AD tenant.
The Azure AD tenant contains the users shown in the following table.

Sub1 contains two resource groups named RG1 and RG2 and the virtual networks shown in the following table.

User1 manages the resources in RG1. User4 manages the resources in RG2.
Sub1 contains virtual machines that run Windows Server 2019 as shown in the following table

No network security groups (NSGs) are associated to the network interfaces or the subnets.
Sub1 contains the storage accounts shown in the following table.

Requirements
Planned Changes
Contoso plans to implement the following changes:
Create a blob container named container1 and a file share named share1 that will use the Cool storage tier.
Create a storage account named storage5 and configure storage replication for the Blob service.
Create an NSG named NSG1 that will have the custom inbound security rules shown in the following table.

Associate NSG1 to the network interface of VM1.
Create an NSG named NSG2 that will have the custom outbound security rules shown in the following table.

Associate NSG2 to VNET1/Subnet2.
Technical Requirements
Contoso must meet the following technical requirements:
Create container1 and share1.
Use the principle of least privilege.
Create an Azure AD security group named Group4.
Back up the Azure file shares and virtual machines by using Azure Backup.
Trigger an alert if VM1 or VM2 has less than 20 GB of free space on volume C.
Enable User1 to create Azure policy definitions and User2 to assign Azure policies to RG1.
Create an internal Basic Azure Load Balancer named LB1 and connect the load balancer to VNET1/Subnet1 Enable flow logging for IP traffic from VM5 and retain the flow logs for a period of eight months.
Whenever possible, grant Group4 Azure role-based access control (Azure RBAC) read-only permissions to the Azure file shares.

Explanation:
As per the official MS doc:
The recommended steps to onboard on Azure File Sync for the first with zero downtime while preserving full file fidelity and access control list (ACL) are as follows:
1. Deploy a Storage Sync Service. --> This needs to be done on Azure .
2. Create a sync group. --> This needs to be done on Azure
3. Install Azure File Sync agent on the server with the full data set. --> This needs to be done on server1.
4. Register that server and create a server endpoint on the share. --> This needs to be done on server1.
5. Let sync do the full upload to the Azure file share (cloud endpoint).
6. After the initial upload is complete, install Azure File Sync agent on each of the remaining servers.
7. Create new file shares on each of the remaining servers.
8. Create server endpoints on new file shares with cloud tiering policy, if desired. (This step requires additional storage to be available for the initial setup.)
9. Let Azure File Sync agent do a rapid restore of the full namespace without the actual data transfer. After the full namespace sync, sync engine will fill the local disk space based on the cloud tiering policy for the server endpoint.
10. Ensure sync completes and test your topology as desired.
11. Redirect users and applications to this new share.
12. You can optionally delete any duplicate shares on the servers.

First action: Create a Storage Sync Service
The deployment of Azure File Sync starts with placing a Storage Sync Service resource into a resource group of your selected subscription.

Second action: Create a sync group
A sync group defines the sync topology for a set of files. Endpoints within a sync group are kept in sync with each other. A sync group must contain one cloud endpoint, which represents an Azure file share and one or more server endpoints. A server endpoint represents a path on a registered server. A server can have server endpoints in multiple sync groups. You can create as many sync groups as you need to appropriately describe your desired sync topology.

Third action: Run Server Registration
Registering your Windows Server with a Storage Sync Service establishes a trust relationship between your server (or cluster) and the Storage Sync Service. A server can only be registered to one Storage Sync Service and can sync with other servers and Azure file shares associated with the same Storage Sync Service. ) Reference:
https://docs.microsoft.com/en-us/azure/storage/files/storage-sync-files-deployment-guide?tabs=azure-portal

Reference:
https://www.itprotoday.com/microsoft-azure/check-if-azure-region-supports-2-or-3-fault-domains-managed-disks
https://github.com/Azure/acs-engine/issues/1030

Reference:
https://docs.microsoft.com/en-us/azure/active-directory/privileged-identity-management/pim-how-to-add-role-to-user?tabs=new

Reference:
https://docs.microsoft.com/en-us/azure/storage/common/storage-private-endpoints
https://azure.microsoft.com/en-us/blog/azure-backup-now-supports-storage-accounts-secured-with-azurestorage-firewalls-and-virtual-networks/