Active directory - Sharepoint - is an e-mail distribution list and cannot be added to the Website directly. Troubleshoot issues with Microsoft SharePoint Foundation.

Group type should always be in security and not in Distributed.

If it is in distributed then the group will not be displayed in a site collection or may throw Active directory - Sharepoint - is an e-mail distribution list and cannot be added to the Website directly. Troubleshoot issues with Microsoft SharePoint Foundation.