I get the following error message when trying to share a OneDrive document with 28 recipients and choose the permission option of 'Recipients can view'. If I change the permission option to 'Organisation can view', this message disappears.
Your best best when using distribution groups etc. Is to use the Anyone can view option instead if it's available as this is a single link. Otherwise you will be dealing with a bunch of people having to login etc. And it probably is stating that it might not be able to send to all the included objects in a large distribution group. Could be a limit too but not sure, how large is the group? Doing anyone view is quick and easy fix here assuming the file isn't sensitive and your tenant allows it.