According to Azure File upstream references, the driver supports both snapshots and fsGroup, however, the respective tests aren't currently passing. Example: https://prow.ci.openshift.org/view/gs/origin-ci-test/pr-logs/pull/openshift_azure-file-csi-driver-operator/15/pull-ci-openshift-azure-file-csi-driver-operator-main-e2e-azure-file-csi/1453356046625017856
fsGroup may need CSI driver updates - support for fsGroup was merged there only recently.
In addition, fsGroup tests probably don't expect fsGroup to be applied as a mount option, we need to check this.
I spoke with Andy Zhang from Microsoft and he told me there's a blocking issue that needs to be fixed before FSGroup works on Azure File: https://github.com/kubernetes-sigs/azurefile-csi-driver/issues/682