When you run the powershell commands, include this switch to make the changes:
BypassSecurityGroupManagerCheck
https://learn.microsoft.com/en-us/powershell/module/exchange/set-distributiongroup?view=exchange-ps
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I've migrated the Automation Account runbooks to authenticate with managed identity to Exchange Online with the API permission Exchange.ManageAsApp, and I'm receiving the following error:
You don't have sufficient permissions. This operation can only be performed by a manager of the group.
The distribution group is not set to membership by owner approval.
When you run the powershell commands, include this switch to make the changes:
BypassSecurityGroupManagerCheck
https://learn.microsoft.com/en-us/powershell/module/exchange/set-distributiongroup?view=exchange-ps