Sounds like you must be using an IT managed Mac. You should inquire with your IT department. That being said, I am a MacSysadmin / Engineer for my employer and can shed some light on what's going on.
The "dsconfigad" command uses the macOS built-in Active Directory plugin. However, Apple Enterprise Connect does not use the macOS AD plugin. The Mac doesn't need to be bound to AD for Enterprise Connect to function. Enterprise Connect talks directly to your Active Directory and Kerberos authentication bypassing the older macOS AD Plugin. You can still bind a Mac to AD but the whole point of Enterprise Connect was to avoid doing so.
When you bind a Mac to AD using the dsconfigad command and login with an AD account, a mobile user account is created. The passwords easily get out of sync when you change your password and the FileVault cached copy of the password may be the previous password. The keychain will prompt the user extensively and the user needs to know to enter their previous password to unlock the keychain and allow the keychain password to be updated. Despite extensive user training this behavior caused no end of trouble for help desks as it was frequently occurring every time a users password expired or was reset. To solve the problem, Apple Enterprise offered IT corporate departments the option to not bind the Macs to AD and use local accounts along with their new Enterprise Connect software which will detect when the password is changed and allow the user to change the password and sync the password on the Mac, in the keychain, and in FileVault.
When Apple first made Enterprise Connect available you had to be a corporate business and not an educational institution to obtain it. The tool was written by internal Apple employees in the Enterprise Support division. It was not included with the operating system. Although Enterprise Connect wasn't necessarily individually licensed, you had to pay for an in person site survey and evaluation including travel expenses for Apple Engineers to gain access to the software. Apple wanted to ensure that Enterprise Connect would work in your environment and because many AD environments were configured outside of Microsoft best practices that is why they wanted a site survey and onboarding process to ensure things would work properly. That resulted in many Apple customers without the financial means or those in the Education market to seek an alternative solution.
There was a couple of early Python based open source community solutions, whose names now escape me, but have since been EOL retired and replaced by the open source Swift language, NoMAD (No More Active Directory) tool. NoMAD works very similarly to Enterprise Connect. JAMF one of the leading Mobile Device Management server providers bought out the company behind NoMAD and they now sell JAMF Connect which is a commercial version of NoMAD that supports many modern Identity Providers such as OKTA, Ping, AzureAD, JumpCloud, etc. for cloud authentication. The original NoMAD, which supports on-prem Active Directory servers is still open source and free. But if you require cloud authentication, I don't know of any free solutions at this time. JAMF Connect is licensed per user and it's typically deployed with the JAMF MDM products.
Apple has started building Enterprise Connect functionality into macOS as an option for IT departments to utilize. The Kerberos SSO extension is intended to replace Enterprise Connect. It does require a complex configuration that really should be deployed via an MDM server and it is not as full featured as JAMF Connect nor NoMAD. It could be deployed by Microsoft Intune which does support Apple MDM Configuration Profile payload deployment functionality and works with Apple Business / Education Manager.
I have a fleet of Macs that I manage at work using NoMAD and it's been rock solid. We have a Configuration Profile to configure it's behavior and it runs as a LaunchAgent on the users Macs. We may be transitioning to JAMF Connect to provide PING Federated and AzureAD authentication in the future. I've tested the Kerberos SSO plugin as an alternative to NoMAD / Apple Enterprise Connect and it works but I find I like NoMAD / JAMF Connect better. That is just my personal opinion, there are many factors when considering which solution to choose. The Kerberos SSO plugin is improving since Big Sur. It may become the right choice in future. Microsoft also has an SSO plugin in beta that is coming along nicely as well for those who might prefer a Microsoft solution.