SC-300 teaches that group-based licensing supports security groups and Microsoft 365 groups, with assigned or dynamic user membership. The guide states: "Licenses can be assigned to groups whose members are users
; nested groups aren't processed and devices cannot be licensed ." Applying this to the table: Group1 (Security-Assigned) and Group2 (Security-Dynamic User) are valid; Group4 (Microsoft 365-Assigned) and Group5 (Microsoft 365-Dynamic User) are also valid. Group3 is a Security-Dynamic Device group and therefore ineligible because "device objects do not receive user licenses." Consequently, the Office 365 E5 license can be assigned directly to Group1, Group2, Group4, and Group5 only.