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Edit Group only offered licenses for cloud-only Security groups. Entra licenses any security-enabled group (mail-enabled security, M365 with securityEnabled), synced or not, since assignedLicenses is cloud-only. Gate both the form section and Invoke-EditGroup on securityEnabled, and update the Edit Group docs to match.
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Enable group-based licensing for any security-enabled group, including mail-enabled security groups and Microsoft 365 groups with security enabled.