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Exchange Online
A cloud-based service included in Microsoft 365, delivering scalable messaging and collaboration features with simplified management and automatic updates.
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Yes, there is a possibility that some Outlook clients may continue to reference the deleted group from their AutoComplete cache even if a new group is created with the same email address. This can result in recipient resolution or NDR issues if Outlook is using a cached LegacyExchangeDN/X500 value from the original group.
To minimize impact, users should remove any old AutoComplete entries and select the group from the Global Address List again.