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ERROR: The action 'Set-DistributionGroup', 'AcceptMessagesOnlyFromSendersOrMembers', can't be perfor
error in setting sending restriction to distribution group The action 'Set-DistributionGroup', 'AcceptMessagesOnlyFromSendersOrMembers', can't be performed on the object 'ContosoALL' because the ...
The fix is to configure this on-premises, as with pretty much any other scenario involving dirsync. Namely, edit the authorig attribute to include the users you need.
Full list of related attributes can be found for example here: https://support.microsoft.com/en-us/help/2618066/how-to-manage-exchange-dynamic-distribution-group-restrictions-and-dis
The golden rule is to always manage objects in the environment they belong to. In this case, the DL belongs to the on-premises organization, so you must manage it there. If it were a cloud object, you could manage it with the Office 365 tools.