There should be no issues. Even when you are "using" an on-premises group, you are effectively using a cloud group with different object ID, whose members/properties are being kept in sync with your on-premises one.
License allocation with cloud groups with Hybrid Azure AD Join
Hello Folks,
I am planning to change license allocation method.
Currently I am using on-premise security group for license allocation of Office 365 licenses.
However, I will change them to cloud groups on azure ad. In this case, i am wondering we might face unforeseen issues on device enrollment of Hybrid Azure AD Join.
Does anyone know or have experience of using cloud group for license allocation on Hybrid Azure AD Join environment?
If I should not use a cloud group for office365 license allocation with Hybrid Azure AD Join environment, please kindly let me know.
Thanks!
Koji Uchida