Hi @Yanez, Alex
According to the error message, it seems like a permission issue.
It indicates the current account don't have permission to create DLs in this OU.
Have you limited the write scope when assigning permission to this account?
For example, you run this cmdlet New-ManagementRoleAssignment with the parameter RecipientOrganizationalUnitScope to limit the OU:
New-ManagementRoleAssignment -Role "Distribution Groups" -user "<current account>" -RecipientOrganizationalUnitScope contoso.com/Engineering/Users
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