Azure Files has increased the root directory handle limit per share from 2,000 to 10,000 for standard and premium file shares. This improvement benefits applications that keep an open handle on the root directory. For example, Azure Virtual Desktop with FSLogix profile containers now supports 10,000 active users per share (5x improvement).
Note: The number of active users supported per share is dependent on the applications that are accessing the share. If your applications are not opening a handle on the root directory, Azure Files can support more than 10,000 active users per share.
The root directory handle limit has been increased in all regions and applies to all existing and new file shares.
To learn more, see: Azure Files scalability and performance targets