To assign a license to a group, the group must be a security group, not an Office 365 group or a mail-enabled security group1. According to the image, Group1 and Group3 are security groups, while Group2 and Group4 are Office 365 groups. Therefore, only Group1 and Group3 can be assigned a license.
To assign a license to a group, you need to follow these steps2:
* Sign in to the Azure portal with a license administrator account.
* Go to Azure Active Directory > Licenses and select the product license that you want to assign to groups.
* Select Assign at the top of the page and then select Users and groups.
* Search for and select the group that you want to assign the license to and then select OK.
* Select Assignment options to enable or disable specific services within the product license and then select OK.
* Select Assign at the bottom of the page to complete the assignment.