Hi @Pranith-3606 • Thank you for reaching out.
The source attribute specifies where the group was originally created. When the group is directly created in Azure AD, the source is set to "Cloud" and if it is created in local AD and then synced to Azure AD, the source is set to "Windows Server AD". The value of this attribute cannot be set/changed manually. If you want to use the group "vmName-Admin" with "Windows Server AD" as the source, it has to be created in the on-premises AD and synced to Azure AD. However, in that case, the group members will also be required to sync from on-prem AD. Synced groups cannot contain Cloud-only users.
Also, as of now, only Azure AD users can be added to the local groups of the "Azure AD/hybrid Joined VM" by using the below command. Adding cloud-only groups to local groups is not yet supported.
net localgroup "Administrators" /add "AzureAD\the-UPN-attribute-of-your-user"
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