I created a test file sync group and everything worked correctly. I would now like to rename the file sync group, but I cannot find any information about the ability to rename the Azure file sync group.
Unfortunately this is not currently a supported feature. You will need to delete and recreate the sync group if wish to change the name. For product feedback and feature requests I will refer you to our feedback forum. This allows the community to add their voice and upvote popular ideas. The forums are monitored and responded to by our product teams.
Hope this helps. Let me know if you have further questions or issues.
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