No, it's not possible. You have to use either a mail-enabled security group or "plain" security one.
Sharepoint permissions
Hi All,
I have a query about SharePoint Online. I have a SharePoint site, and I want to share this site with a distribution list created in Exchange Online. However, when I try to share it, I am unable to find my distribution list. Is it not possible to share a site with a distribution list? I am aware that it will work for a mail-enabled security group but am not sure about a distribution list.
Settings --> Site permissions --> Advanced permissions settings --> Grant Permissions --> Invite people.
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Emily Du-MSFT 47,296 Reputation points Microsoft Vendor
2024-07-08T05:53:13.53+00:00 Unfortunately, the distribution lists aren't supported methods for assigning SharePoint permissions.
You can give people permissions to the site by adding individual users, security groups, or Microsoft 365 groups (Nested security groups can cause performance issues and are not recommended.)
Reference:
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