We’re currently evaluating an option that will provide the functionality offered by nested groups, but removes the complexity nested groups adds. We appreciate your patience on this ask and want to ensure we deliver a solution that benefits all of our customers. Below are use cases that we’d like for you to stack rank, with #1 being priority for you. We thank you for the continued comments and feedback.
Use case A: nested group in a cloud security group inherits apps assignment
Use case B: nested group in a cloud security group inherits license assignment
Use case C: nesting groups under Office 365 groups
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And there needs to be more transparency on this issue for new organisations. Nested groups exist in almost every AD structure. Not being made aware that this will break upon import to Azure AD has caused a great deal of struggle in the form of re-structuring afterwards.