I am seeing the exact same thing.

I know that file share permissions can trip you up with fslogix but the same message I am getting of: "Querying computer's fully qualified distinguished name failed. (Configuration information could not be read from the domain controller, either because the machine is unavailable, or access has been denied.)" indicates an issue with resolving to Entra ID that I am not seeing on on-prem joined Session Hosts.

Were you able to find a resolution?