When attempting to create or modify an Active Directory group, you receive the error:

Update of the group failed. Failed to set the group scope. The server is unwilling to process the request. (Exception from HRESULT: 0x80072035)


This error can occur if either the Active Directory domain and forest level do not support the specified group scope or that the conversion between group scopes is not permitted.


Review the following Microsoft documentation and ensure that you are selecting a group scope that is valid for your current domain and forest functional level and if you are updating an existing group ensure that the conversation path is supported.

Active Directory Group Scopes

Domain and Forest Functional Levels