It’s true that the cloud-managed capability currently applies only to mailboxes using the isExchangeCloudManaged flag. There isn’t an equivalent flag for distribution lists, mail contacts, or mail users. However, Microsoft has introduced Group SOA (Source of Authority) to handle those scenarios.
For example, if you’ve already migrated all user mailboxes to the cloud and no longer need to manage Distribution Lists (DLs) or Mail-Enabled Security Groups (MESGs) in Active Directory, you can use Group SOA to make those groups cloud-managed. This lets you remove them from AD DS and manage them directly in Exchange Online, either through the Exchange admin center or via Exchange PowerShell modules. It’s worth noting that these mail objects can’t be managed directly from Microsoft Entra ID or through Microsoft Graph APIs, so Group SOA is the intended solution for managing DLs and MESGs fully in the cloud.