The easiest thing to do here is to recreate the DG as cloud only (i.e. remove it in AD and create it directly in O365). If that's not an option, you will have to verify the corresponding attributes in AD and make sure there are no sync issues (usually a duplicate address or similar) that prevent the changes to replicate to Exchange Online.
Hybrid Exchange Distribution Group ?
Therefore, the company I worked with encountered some confusion in their hybrid MS365/on premises deployment.
There is a distribution list (which we call) that exists locally in the management console and on the MS365 end. However, although the local Exchange control panel displays as accepting emails from both internal and external sources of the organization, MS365 has decided to ignore this content and only accept emails from "internal" to the company. distlist1@example.comdistlist1
Therefore, emails used to receive invoices from a specific team were rejected and their emails were not received. distlist1
This cannot be changed in terms of MS365 and appears to be some kind of disconnection or unsynchronization between Exchagne local and MS365.
I'm not sure where to start looking for the possible cause of this issue with MS365, but if anyone has any instructions on where to look next and fix this problem on MS365, which actually accepts the local setting of 'allow everyone to send to list', that would be great.