The Azure provisioner currently defaults to security groups. There have been requests to allow Unified (Office 365) groups, and mail enabled groups.

 

Ref: https://docs.microsoft.com/en-us/graph/api/resources/group?view=graph-rest-1.0

 

Unifed: groupTypes = ['Unified']

mailEnabled: mailEnabled = true

Security: if not a Unified group. In theory a mail enabled security group can be made, but this has been reported to fail