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We've recently activated Atlassian Access, and are successfully pulling a user group from Azure AD.
It shows up in Groups in the Atlassian admin Directory, and also in the Atlassian Admin "Manage Product" screen (without the Default checkmark, if that matters), with users indicated as "User" of "Confluence".
However, the Group doesn't show up in Confluence itself, neither in the Global Permissions screen, nor as an option in any Global or Space permissions groups, nor in the Restrictions dialog.
Are we missing a step in getting the groups to move over?
Hope all is well. The group won’t show up automagically as you have to find in the default permission where you want that group and what permissions to give it.
When adding permission in confluence make sure you’re at the group level as the user level will not let you add groups. In admin console the group should show a lock on it after the name. You typically don’t see that lock in the group picker.
If the group after hitting edit is not searchable I would try and clear your browser cache and see if that helps.
Here is an article that goes over permission in Confluence
Let me know if this helps