You are the IT administrator for your company. Your company hosts Active Directory (AD). You want to also use Azure AD.
You need to configure your environment so that password hash synchronization can be used for authentication.
What should you do?
You should install Azure AD Connect on an on-premises server. This tool allows you to synchronize password hashes from a domain controller to Azure AD.
You should not install AD Domain Services on an Azure VM. This does not allow synchronization from an on-premises AD infrastructure. It simply places a domain controller in the cloud instead of on-premises.
You should not create a site link on an Azure VM. A site link is an AD object that allows replication across on-premises domain controllers.
You should not create a site link bridge on an on-premises server. A site link bridge is an AD object that represents a collection of site links, which allow replication across on-premises domain controllers.