Creating Distribution list for office 365 in sailpoint using Azure Ad connector

@DharshiniB Can you try by UI as Kamil provided steps here ? Got to Entitlements Catalogue → Click new entitlement …

Creating Distribution Lists in SailPoint using Azure AD Connector - IdentityIQ (IIQ) / IIQ Discussion and Questions - SailPoint Developer Community

If it works, then you can print the plan and see how the plan generated.