Does anyone has experience on connecting Azure AD to this setup? How would that work when every organization should have the option to integrate or not to their directory?
It depends on what you want to do with Azure. The extension is meant to help you manage users’ association with organizations. The extension was written to allow each organization to authenticate using their own Identity Provider. If that’s your use case, it will work pretty well. There is documentation and demos on creator’s site https://phasetwo.io/