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Distribution groups not resolvable in People Picker?

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Doing a migration from on-premise 2010 to SPO. Realised on-premise have site permissions using Distribution Groups rather than users. And when trying to migrate to SPO, SPO cannot resolve these DL, hence not able to set permissions. Is this by design? What is the workaround for these DLs? Create an O365 groups and add each individual users in?

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