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Office 365 - Could we add mail -enabled security group alias to security group?

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Team.

We recently migrated from hosted exchange provider (BAE systems) to Office 365. What we found as some email alias are found in mail-enabled security group and rest are in Distribution list.

At the same time, we migrated our SharePoint to Office 365. We have an issue with permissions - we need to have a security group for share point permissions. so my team went ahead and created security group (no mail enabled) for different departments and added members to it. so here the problem here is

1. Could we add a mail enabled security group to a security group, so the users inside the mail-enabled security group will inherit sharepoint permissions -? Right now it throws an error - (One or more memberships below failed to be updated at this time.)

2. If the above is possible - is it worth changing all the distribution group to mail-enabled...


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