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Licenses can be assigned to any security group, including M365 security enabled.
https://learn.microsoft.com/en-us/azure/active-directory/fundamentals/licensing-whatis-azure-portal?context=azure%2Factive-directory%2Fusers-groups-roles%2Fcontext%2Fugr-context#features
Similar q from sc-300:
https://www.examtopics.com/discussions/microsoft/view/51472-exam-sc-300-topic-1-question-1-discussion/
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