Exam SC-400 topic 2 question 62 discussion

While the answer appears to be C based on Romeokton's link, D. would be less administrative effort. Just create an advanced DLP rule that includes a group condition AND NOT "Sender is" and include user1 and user2's email addresses. No need for a distribution group.

Basically to exclude users from a policy, we need to create an Advanced DLP rule where we need to create a NOT group and specify sender/recipient is a member of a selected distribution group. Now, the question asks "what should you do first?". So, in this case before we can configure advanced DLP rule , we must create the distribution group to be excluded from the rule condition. So answer is C

Its asking to "exclude" two users named User1 and User2 from DLP1 - Your first step is create advanced rule? Really?

C is correct. "If you choose to include specific distribution groups in Exchange, the DLP policy is scoped only to the emails sent by members of that group. Similarly, excluding a distribution group excludes all the emails sent by the members of that distribution group from policy evaluation". https://learn.microsoft.com/en-us/purview/dlp-policy-reference

After reviewing carefully I agree with C. https://learn.microsoft.com/en-us/purview/dlp-policy-reference#policy-scoping

I disagree with the proposed answer "C". When creating a DLP policy it is optional that you exclude people or groups, so I would go with D