Create a Dynamic M365 Group

You cannot use Dynamic SG for SharePoint access for groups. In this case you need to create a M365 Dynamic Group Instead. This is useful for having an ALL users, All Staff so on, once they are onboarded. 

1. Go to AAD Admin Centre 
   

   
   

   
   
2. Go to Groups > All Groups
   

   

   
   
3. Select New Group
   

   
   
   

4. Change group type to Microsoft 365 
   

   

   
   
   

5. Fill in the details as you wish. Don't worry that the Group Email Address may show as a .onmicrosoft.com address, it will change to the default domain through 365 eventually. 
   
   
6. Click Create and it will take you back to the All Groups page
   
7. Select your group and go to Properties
   

   
   
   
   

8. Membership Type to Dynamic User then select Add Dynamic Query
   
9. You can find a lot of information on the types of queries you will have to include here: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/groups-dynamic-membership
   
   Common ones are:
   All users- user.objectId -ne null this includes Users, Guest Users, Shared Mailboxes and Groups. 
   All users except guest users (user.objectId -ne null) -and (user.userType -eq "Member")