[BUG] Add-PnPGroupMember for adding EntraID Group using Managed Identity in Azure Runbook doesn't work

[PowerRanger83]

Reporting an Issue or Missing Feature

I am running the following script in my Azure Automation Account runbook:
Powershell 7.2
PnP 2.3.0

Connect-PnPOnline -ManagedIdentity -url "https://tenant.sharepoint.com/sites/MySiteCollection"
$GroupName = Get-PnPGroup -AssociatedMemberGroup

Add-PnPGroupMember -LoginName "user@domain.com" -Group $GroupName
Add-PnPGroupMember -LoginName "c:0t.c|tenant|f559ca209-88d4-4b0a-9c21-0b9c8d453de0" -Group $GroupName

Expected behavior

Add-PnPGroup cmdlet adds the user as well as the EntraID Group to the specified Member Group

Actual behavior

The user gets added but for the EntraID Grouo I get an Error

The specified user c:0t.c|tenant|f559ca209-88d4-4b0a-9c21-0b9c8d453de0 could not be found.

I can verify that that the Groups Object ID exists!

Steps to reproduce behavior

Running the script abvove

What is the version of the Cmdlet module you are running?

2.3.0

Which operating system/environment are you running PnP PowerShell on?

• Windows
• Linux
• MacOS
• Azure Cloud Shell
• Azure Functions
• [ x] Other : Azure Automation runbook runtime version 7.2

[gautamdsheth]

Looks like a server side error, not sure if we can do anything here about this.
Moving this to a discussion. Hopefully, someone in the community has some idea around this.