After collaborating with a partner, he was curious about the following question:

Using a Windows Active Directory the users are assigned to groups. That said, within Business Central the groups are created as a user. Each group is assigned Business Central permissions. Each user of Business Central has no permission sets assigned and permissions are inherited from the user group assigned to the user within AD.

Is this functionality available using an Azure AD opposed to a Windows AD?

The answer of the above is that this was a feature for Windows AD, and it does not work for Azure AD, however, I am creating this idea since I do believe this is a good idea for the future of our product.