Unable to assign Group to DLP Policy

[Dean_Gross]

I'm trying to create a new DLP policy and when I set the Location to a Distribution group, I get the following error. I can't find anything in the docs that states we cannot use an Office Group, is this prohibited? 

The address 'dev1UQW874E@dlgross.onmicrosoft.com' is not a valid group.

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Request: /api/policy Status code: 500 Exception: Microsoft.Exchange.PswsClient.PswsException Diagnostic information: {Version:17.00.3512.000,Environment:EUSPROD,DeploymentId:834424bdb07d426a86cb82fbec40dad0,InstanceId:WebRole_IN_1,SID:bd7ac26e-8288-4bdd-b92a-f76bedf01b2c,CID:14bd8c43-3bba-4879-a6ec-d2dd03351a2a} Time: 2019-09-27T18:27:06.0725319Z

[#2]

I don't believe Office 365 Groups are supported, they are not listed in the picker and if I try to add one manually I get the same error as you. Use a regular DG or mail-enabled security group.