Hi @Lily Joyce ,
This problem occurs if the dynamic distribution group was set up before the environment became a hybrid deployment and if the dynamic distribution group uses filters to include only mailboxes. Mailboxes that are migrated to Microsoft 365 become mail-enabled users in the on-premises directory.
Use the Set-DynamicDistributionGroup
cmdlet to update the filters for the dynamic distribution group to include mail-enabled users. For example, run the following command:
Set-DynamicDistributionGroup -Identity sales@contoso.com -RecipientFilter {(RecipientType -eq 'UserMailbox') -or (RecipientType -eq 'MailUser') -or (RecipientType -eq 'MailContact')}
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