Settings for user and computer objects in Azure Active Directory Domain Services (Azure AD DS) are often managed using Group Policy Objects (GPOs).
Azure AD DS includes built-in GPOs for the AADDC Users and AADDC Computers containers.
You can customize these built-in GPOs to configure Group Policy as needed for your environment.
Members of the Azure AD DC administrators group have "Group Policy administration privileges in the Azure AD DS domain, and can also create custom GPOs and organizational units (OUs). "
https://docs.microsoft.com/en-us/azure/active-directory-domain-services/manage-group-policy