It appears your still using group write back v1 which only supports m365 groups
There are two versions of group writeback. The original version is in general availability and is limited to writing back Microsoft 365 groups to your on-premises Active Directory instance as distribution groups. The new, expanded version of group writeback is in public preview and enables the following capabilities:
- You can write back Microsoft 365 groups as distribution groups, security groups, or mail-enabled security groups.
- You can write back Microsoft Entra security groups as security groups.
Please enable v2 using the powershell command as per doc.
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