Prevent AAD Security Groups from appearing in SharePoint Online People Picker
Would like to be able to prevent/hide AD Security Groups(that are used for Group Based Licensing) from showing up in SharePoint Online People Picker. This is necessary to ensure that these groups are not being used for anything outside of licensing entitlements.
I believe that the comment below applies to Unified groups. Standard AAD Security groups are not Unified Groups, and are not mail enabled. So the problem still exists that you cannot currently hide security groups from the classic people picker in SharePoint Online.
In Modern UI, the new sharing experience only shows mail enabled security groups - which is fine.
So when will we be able to hide security groups? An idea would be to add the equivalent HideFromAddressBook flag on the security group.
Functionality to show or hide from SharePoint Online people picker similar to show or hide from Address List attribute in Exchange.