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Dynamic Group Membership from Nested Group
I have a several distribution/security groups in our on-premise AD that have been in use for years. We recently implemented a BI tool and have several automated emails being sent throughout the day t...
There's no support for nested groups for either dynamic membership rules or directly adding a group.
Nesting itself is not supported in Office 365 and Azure and MS encourage to convert nested groups to office365 groups.
It will not add actual group rather than members and managing these permissions for now is complex since there is no nesting supported by MS in Azure or Office 365.
With reference to adding support for Nesting Groups in AD:
As per https://feedback.azure.com/forums/169401-azure-active-directory/suggestions/15718164-add-support-for-nested-groups-in-azure-ad-app-acc, they are currently evaluating an option that will provide the functionality offered by nested groups, but removes the complexity nested groups adds.
Below are use cases that can be explored:
Use case A: https://bit.ly/3lYUQ9g in a cloud security group inherits apps assignment
Use case B: nested group in a cloud security group inherits license assignment
Use case C: nesting groups under Office 365 groups