Account template does not have the associated DLs:
"Enable Exchange functionality with MFA" is not enabled.
Check that the following requirements are satisfied on the machine which is connecting to the endpoint: Manage Azure with REST Connector . E.g. PowerShell 7.4 is installed, Microsoft Exchange Online V3 is installed, etc.
To work with Mailbox Distribution Groups "Enable Exchange functionality with MFA" must be enabled:
When it is enabled, "Mailbox Distribution Groups" must be explored.