When should an Azure AD security group be used instead of a Microsoft 365 group?

An Azure AD security group is particularly suitable for assigning access to a variety of resources such as applications, files, and other services within Azure and Microsoft resources. This type of group is specifically designed to manage permissions across multiple resources securely. Members of a security group can be assigned roles or permissions that apply to various Azure resources, enabling organizations to streamline access management and control security settings.

In contrast, options that involve emailing a group of people or focusing solely on public access resources are not the primary functions associated with Azure AD security groups. Additionally, managing device settings often falls under the management capabilities of device security or compliance groups rather than general security groups, which are more focused on permissions and access management.