If this is 365 only group ( Not synced from on-prem), then can not mail enable an existing Azure Security group. You would have to create a new mail-enabled security group
https://learn.microsoft.com/en-us/Exchange/recipients/mail-enabled-security-groups?view=exchserver-2019#create-mail-enabled-security-groups
How to convert M365 Security Group into Distribution list
How to convert M365 Security Group into Distribution list
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Andy David - MVP 150.4K Reputation points MVP
2022-05-11T18:48:37.887+00:00
2 additional answers
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Joyce Shen - MSFT 16,671 Reputation points
2022-05-12T01:45:37.9+00:00 I agree with Andy, if the group is created in cloud directly, we will not be able to change the group type, refer to this: Edit your group information using Azure Active Directory
For the groups synced from on-prem, we could manage them from ADUC, click on the security group to properties, convert the grouptype to distribution.
But note the permissions granted on this group. When you convert it, you will receive the warning message. If you don't grant permission to this group or don't care about the permissions, then click yes to convert it.
Details: Convert Mail Enabled Security Group to Distribution Group
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Abhimanyu Sharma 86 Reputation points
2022-05-12T10:14:52.597+00:00 Thank you so much everyone for your quick response on the Question . I have raised with you guys.
So, this is confirm that we can't convert Microsoft 365 Group into Distribution List from M365 Admin Centre or using Powershell command .
Looking forward to hearing you.