I created a M365 user group with a Team site. The associated SharePoint team site has the expected permission groups. The permission groups contain the M365 group owners and members.
For Owners of the M365 group, permissions seem to flow correctly to SharePoint. For members of the M365 group, permissions are not working in SharePoint. In my screen shot below, the marked user is added directly to the SharePoint permissions group. He is also a member of the M365 group listed below his name. Adding him directly was the only way to get the Edit permissions allowed by the SharePoint permissions group.
I understood that When you add owners or members to the Microsoft 365 group, they're given access to the SharePoint site through the combination of the M365 group and the SharePoint permissions group.
I have not broken any inheritance on this site. I have looked at the M365 group membership in Teams and in the Admin center, the user shows up listed as a member. This effects multiple M365 group members who have been in members group for weeks so I do not believe it is a replication issue across the services.
Can anyone please advise as to why members of the M365 group are not getting SharePoint permissions from the group membership?