Azure Active Directory License assignment
It appears to not do a recursive search of the groups you assign AAD Basic and Premium too. Please add the ability to do recursive group license assignments.
Thanks for the feedback! You’re correct, group-based license assignment today only works with direct group membership. We’re currently exploring the possibility of supporting transitive group membership as well.
Dan M commented
Any update on this? Group based licensing would be way more useful once support for nested groups is added.
Jason Gudmundson commented