Permissions vs Audience via distribution list


I have been able to Audience links on my Modern Team site by using an AD Distribution ( but when I try to assign permissions to my site using the same distribution I receive a " is outside of your organization." message. Why am I able to use it for one and not the other? 

3 Replies
Pretty sure because Audience targeting can support distro lists, but permissions cannot and require the group to be security group enabled.
best response confirmed by Chris_Mancini (Contributor)
It can be a security group, a e-mail enabled security group or an Office 365 Group

Got it...just seems odd that one aspect allows the use of distros and another doesnt. But, we are talking about Sharepoint so that should explain everything.