Stumbled on this in a corporate test environment when I tried to create a new Microsoft Team (an operation that requires rights to create new groups) and was only given the choice of adopting an existing group.
By default Microsoft 365 expects everyone is able to create groups on the tenant. Microsoft recommends that you not change that. Then they go ahead and tell you how to change it anyway.
"Manage who can create Microsoft 365 Groups." Microsoft Docs, https://docs.microsoft.com/en-us/microsoft-365/solutions/manage-creation-of-groups?view=o365-worldwide. Retrieved February 12, 2021.
Well, by now this little bit of dangerous knowledge has made its rounds, and perhaps that's why you wound up here.
So the question is, how do you tell if its been done in your tenant?
Like most things in the world of Microsoft nowadays, the answer is: just run some PowerShell commands!
(requires installation of the AzureADPreview module)
First, log into the tenant's Azure AD:
PS C:\Users\Me> Connect-AzureAD
Account Environment TenantId TenantDomain AccountType
------- ----------- -------- ------------ -----------
me@example.com AzureCloud 4dfc8c83-e20c-4847-ba61-f4e274515e25 example.onmicrosoft.com User
Now get the AD settings by first retrieving the settings object:
PS C:\Users\Me> Get-AzureADDirectorySetting
Id DisplayName TemplateId Values
-- ----------- ---------- ------
316ae495-07e6-45f5-b192-6c6436417d5c Group.Unified e3f7eabe-4a59-4422-938f-74b251dd96a1 {class SettingValue...
Display the individual settings values:
PS C:\Users\Me> (Get-AzureADDirectorySetting -id 316ae495-07e6-45f5-b192-6c6436417d5c).Values
Name Value
---- -----
EnableMIPLabels false
CustomBlockedWordsList
EnableMSStandardBlockedWords false
ClassificationDescriptions
DefaultClassification
PrefixSuffixNamingRequirement
AllowGuestsToBeGroupOwner False
AllowGuestsToAccessGroups True
GuestUsageGuidelinesUrl
GroupCreationAllowedGroupId b0454bb1-cb3e-4152-a611-0b45096f540b
AllowToAddGuests True
UsageGuidelinesUrl
ClassificationList
EnableGroupCreation False
"EnableGroupCreation" is the key setting here. It is set to False. There's also a group uuid in "GroupCreationAllowedGroupId".
Finally, retrieve the group name using the uuid shown in "GroupCreationAllowedGroupId":
PS C:\Users\Me> Get-AzureADGroup -ObjectId b0454bb1-cb3e-4152-a611-0b45096f540b
ObjectId DisplayName Description
-------- ----------- -----------
b0454bb1-cb3e-4152-a611-0b45096f540b GroupMakersGroup
NOTE: Names and uuids changed to protect the not-so-innocent. Remember, uidgen is your friend!