Currently only Microsoft Entra security groups can be added into Business Central Security Groups.
This however doesn't take into account Microsoft Graph Groups (Unified Groups, Microsoft 365 Groups) that have Security Enabled set to true.
For example, a Microsoft 365 Group with SecurityEnabled set to true can be used on Dynamics 365 Power Platform to be assigned roles via Teams for Dynamics 365 Sales, Marketing, Customer Service, so-on.
https://learn.microsoft.com/en-us/graph/api/resources/groups-overview?view=graph-rest-1.0&tabs=http#group-types-in-microsoft-entra-id-and-microsoft-graph
This is not currently possible in the Business Central as Security Groups are limited to where the Type is Security Group.
Comments
This is actually almost a bug because you can still type the Security Enabled group name into the box manually and Business Central will validate/accept it, however the assist edit lookup (...) doesn't show Security Enabled groups and instead filters for groups of Type = Security.
Category: Tenant Administration
Business Central Team (administrator)
Thank you for this suggestion! Currently this is not on our roadmap. We are tracking this idea and if it gathers more votes and comments we will consider it in the future. Best regards, Business Central Team