Your organization has a Microsoft Entra ID tenant. A security group named Sales-Group has its membership type set to Assigned. A user named User1 is configured as the owner of Sales-Group and does not hold any directory roles. You need to configure Sales-Group to dynamically include users based on their department.
Can User1 change the membership type of Sales-Group to Dynamic User?
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No, User1 cannot change the membership type of Sales-Group to Dynamic User because group owners without administrative directory roles do not have permissions to modify group membership types.
Group owners are permitted to manage group membership (adding/removing users) and update group settings (like description or name) for the groups they own. However, changing a group's membership type (e.g., from Assigned to Dynamic User or Dynamic Device) requires specific administrative directory roles such as Global Administrator or Groups Administrator. Since the user does not hold any directory roles, they cannot change the membership type.
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Group ownership permissions and membership type management in Microsoft Entra ID