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It is currently not possible to update SMTP aliases or email addresses of Unified groups with mailboxes in Exchange Online.

Cause

Exchange Online doesn't allow updating these properties via PowerShell when PowerShell session is established under an Application principal. More details on this issue can be found in this article on Microsoft forums.

Error message

Update of Alias or Email Addresses failed with the following error We failed to update the unified group. Please try again later.

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