PROBLEM
When an on-premises distribution group is synced to a Microsoft Office 365 organization through Active Directory synchronization, migrated users who are owners of the distribution group can't manage it in Microsoft Exchange Online. For example, a user may receive an error message that resembles the following:
The action '<cmdlet>', '<property>', can't be performed on the object '<name>' because the object is being synchronized from your on-premises organization. This action should be performed on the object in your on-premises organization
.SOLUTION
Distribution groups that are created in Office 365 through directory synchronization must be managed in the on-premises environment. Distribution group owners must manage the group by using on-premises tools for Exchange Server such as the following:
- Exchange Admin Center
- Exchange Management Console
- Exchange Management Shell
- Exchange 2013: Manage distribution groups
- Exchange 2010: Managing distribution groups
REFERENCES
For more info about troubleshooting managing distribution groups in Office 365, see the following Microsoft Knowledge Base article:
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2731947 "You don't have sufficient permissions" error when you try to remove or make a change to a distribution group in Office 365
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