If you are adding the security group directly as a member, this is the expected behavior (as security groups are not valid Exchange recipients, so cannot receive mail). You can use mail-enabled security groups instead. If that's not an option, add the members directly instead.
The security group has not enabled email
We do have a situation where we want to set up an Exchange distribution group (created using New Distribution Group with closed join and leave) to easily connect multiple teams. Directly adding users works fine, but using these teams' security groups doesn't seem to work. The security group has not enabled email, but each user object in the security group has a mailbox.
Does anyone know if there is a way to make it work? Does the communication group seem to only check its direct members? Is it possible that the communication group is a universal group, while the security group is only a global group? I do know that revers don't work.
One question I came across mentioned this technet article citing the general definition of a distribution group as an answer but that doesn't answer the question.