Azure AD DS and Roaming Profiles

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I am trying to setup my Windows Server to host user Roaming Profiles and Data but am having trouble.

I am using Azure AD Domain Services and have a powerful VM running Windows Server 2016 with AD that lists all the users synced from Azure AD.

When I try to view the profiles and add users home directories with: \[ServerName]\UserHomes$%Username%, the folders are created correctly but I get an access denied message.

I am using the Global Admin account and believe that permissions are set up correctly on the UserHomes directory.

When I view an individual user, I am not able to add a home directory since this item is disabled.

User Profile View with Disabled Home Directory

Am I going about this the wrong way since we are using the Azure AD DS and not a single on premises server AD?

Appreciate any help or guidance!

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Thirgiftthub - MSFT Identity On BEST ANSWER

You can deploy your on-premises environment on the cloud. After deploying AD DS you will be able to create the roaming profile for the on-premises users.

If it is cloud only environment you can use enterprise roaming to share your profile among your cloud joined devices. You cannot use Global admin to manage Home directory.