Assign Azure AD role By AD Security Group
Using AD security groups to delegate access to Azure AD roles is not supported at the moment (March 2021). This post offers two workarounds.
Permissions to manage Azure AD and Office365 are often assigned via Azure AD Roles. If you have strong access management processes and tooling for on prem Active Directory (access request &approval workflow, joiners & leavers, access reviews & reporting, auditing and alerts) you’ll likely want to reuse these to manage access to Azure AD and Office365.