Hi Bryan Bates,
Thank you for posting in the Q&A Forums.
First, you need to confirm that the service account does have administrator privileges and understand the specific quota limits in Microsoft 365 (M365) for group creation. Typically, Microsoft sets different quota limits based on different subscription plans and license types. Admins can view and modify these restrictions through the Microsoft 365 admin center.
If your service account has created nearly 2,000 groups and the standard quota limit is much lower than that, cleaning up groups that are no longer needed is a straightforward and effective way to reduce the quota used. This can be achieved by writing a Power Automate flow that automatically identifies and removes groups that have not been used for a long time or that meet specific cleanup criteria.
Consider how you want to optimize how your groups are used and managed. For example, you can evaluate whether all created groups are necessary, or whether you can reduce the total number by merging groups.
Best regards
NeuviJ
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