So when we create a Team from a Group, it adds each person as a Member. As that group is updated in AD, do those people continue to get added? Thus far, it doesn't seem like that is how it works for us.
Seems like it would defeat the purpose of administering permissions using groups if that is the case?
That is how it's supposed to work, anyone in the group matches up to the Team and they are either owner or member, just like they are in the group. If it doesn't update over time then you are probably having the same issue someone else posted about earlier where it's not pulling in that group information for Teams for some reason, might need to call up Microsoft.