Once you have created a Security Group or Microsoft 365 Group, you cannot change it to one or the other. Once a group is created, you will have to delete the group and remake it again, then select the appropriate group type.
1: Click on "Delete Group", then "Yes"
2: The group will be permanently deleted and no longer exist. You can recreate the appropriate group type following the "How to Create a Group in The My Apps Group Access Panel" documentation https://ddc.zendesk.com/knowledge/articles/14997149738765/en-us?brand_id=114095071991
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