In a hybrid Office 365 environment where there are still users and groups in a local (on-premise) Active Directory, groups can be added and managed to that local directory. There are some combinations of groups and user objects which aren’t compatible or allowed to be included in groups.
Some objects can not be added as a members to groups, it depends on a property call group scope. If you try to add group with invalid group scope, a job in Nova Delegation & Policy Control is scheduled but it ends with error. The correct / allowed combinations of users and groups is shown below: