Hi Ian,
My name is Umar and I'd be happy to help you out with your question.
Please note: This is a user-to-user community forum. We are users just like you who help others. We are not employees of Microsoft.
You're correct that the current functionality for creating contact groups in Teams doesn't directly translate to the New Teams experience. While the old Teams method involved the Chat dropdown and "Contacts," that specific interface element isn't present in the New Teams design. The new Teams client has replaced the contact list with the People app, which allows users to add new contacts, designate contacts as favorites, and add categories to contacts. However, the ability to create contact groups similar to the classic Teams client is not yet supported in the new version.
Please note that switching to the previous version of Teams may limit access to some of the newer features and improvements introduced in the New Teams interface. It's recommended to periodically check for updates to the New Teams interface to see if contact group functionality has been added.
I hope this information is helpful. Please let me know if you have any other questions.
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Best Regards,
Umar Majeed