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Its not true that this is supported, you still today on 12.0.2 have to enter a password when client is setup for the first time, before the client get the policy and federation is enabled. This is a mych needed feature.
This is already supported and works well for Notes (standard client) if you have ADFS with Integrated Windows Authentication. It has been supported since 9.0.1 (FP10 and higher recommended).
Server side requirement: https://help.hcltechsw.com/domino/11.0.1/admin/conf_enablingintegratedwindowsauth_c.html
To configure password-less integrated windows authentication from a new client install, you'll need to implement a deploy.nsf and include it in the installation kit. The details for that are here: https://help.hcltechsw.com/domino/11.0.1/admin/inst_customizinganinstallkittosetcertifierandtrustdef_t.html
As you mentioned, you do need a setup.txt config file. When you define the Username there use %OSNAME% https://help.hcltechsw.com/domino/11.0.1/admin/inst_settingupnoteswithascriptablesetup_c.html
The user's Active Directory mail attribute needs to match the internet mail address for Domino.
Lastly the Domino server needs a way to resolve the OS Name to the user's name in AD. So you may need to add the OS Name to the person document. When I set it up, I added it to the shortname field.
Please open a case with HCL support if you are having difficulty.
We need this functionality to include support for access from NotesTtraveler and verse (android / iphone). and that is also available also for Basic Notes Clients, not only the Notes Standard Client