Domain Join Fail on AVD Provisioning Using Image

Hello Community,

-Only signed in with local user/admin no entra id was used.

-Using customized generalized Image.
-Followed the link Create an Azure Virtual Desktop golden image | Microsoft Learn and the link to sysprep. Thus, sysprep on the vm, wait for full stop, and generalized via CLI and successfull.
-Image was created on the same vnet and the hosts reside.
-Once VM is provisioned I get this error (first during provisioning and second well the VM join the hostpool, just does not join the domain) I manually went to the VM with the local user and was able to join it to the domain and is green...

Is there a setting I am missing or have someone seen this typer of error? Do I need to figure out a custom script as part of the process?

Thank you.