
Hi @Anantha Rengan Kannan ,
Thank you for posting in this community.
Instead of creating all groups at once, try creating them in smaller batches. Maybe this can help you stay below the threshold during each operation.
If this doesn't work, will trying to create the group manually work? Because according to my internal and external searches some users have previously reported that it is not possible to create content above the 5000 threshold using CSOM scripts or PnP PowerShell cmdlets. If manual creation works it means that new groups over 5000 can probably only be created manually, or try other languages to see if this works.
If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment".
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.