Creating a Security Group with Owner doesn't work using Service Principal in PowerShell

I'm trying to create an Azure security group across PowerShell and connected with a service principal.

My service principal has a Custom Role with microsoft.directory/groups/create permission allowing me to create Security Groups and Microsoft 365 groups, excluding role-assignable groups.

I'm using Microsoft.Graph.Groups module in PowerShell and I gave my service principal good rights to use Graph API.

When I create an empty security group with the command

New-MgGroup -BodyParameter $params

with

$params = @{
>>         description = "Group with designated owner DJER0105"
>>         displayName = "Group Test 20-07"
>>         mailEnabled = $false
>>         mailNickname = "GroupTest20-07"
>>         securityEnabled = $true
>>     }

My request pass without problems, BUT when I try to put an Owner I got a 403 error "Insufficient privileges to complete the operation."

$params =  @{
>>         description = "Group with designated owner DJER0105"
>>         displayName = "Group Test 20-07"
>>         mailEnabled = $false
>>         mailNickname = "GroupTest20-07"
>>         securityEnabled = $true
>>         **"owners@odata.bind" = @(
>>             "https://graph.microsoft.com/v1.0/users/47f89f36-2ad7-45ee-a1ac-3cd0b0e021df"**
>>         )
>>     }

Does someone have any idea why I can't perform this action (security group creation with owner) using the service principal?

I already tried to do the same but with a nominative account (user account) which works well in both cases.

I tried to add the owner after creation like this:

$params = @{ "@odata.id" = "graph.microsoft.com/v1.0/users{id}" }

New-MgGroupOwnerByRef -GroupId $groupId -BodyParameter $params

And I got same error 403 "Insufficient privileges to complete the operation."

For information I don't need to be the owner of the security group, I want to create a security group and put another user as owner.

> Creating a Security Group with Owner doesn't work using Service Principal in PowerShell

I tried in my environment and got the below results:

I created an application with API permission Directory.AccessAsUser.All with granted admin consent.

Now, I tried with the below command it created the group with the owner.

Command:

$tenantId ="your-tenant-id"
$appId = "your-client-id"
$ownerObjectId = "user object id"
$groupName = "Testvenkatgrp"
$groupDescription = "Group with designated owner DJER0105"

Connect-MgGraph -ClientId $appId -TenantId $tenantId -CertificateThumbprint "your certificate thumbprint"

# Create the security group
$params = @{
    description = $groupDescription
    displayName = $groupName
    mailEnabled = $false
    mailNickname = $groupName.Replace(" ", "")
    securityEnabled = $true
}
$group = New-MgGroup -BodyParameter $params

# Assign the owner to the security group
$ownerUrl = "https://graph.microsoft.com/v1.0/users/$ownerObjectId"
$ownerRef = @{
    "@odata.id" = $ownerUrl
}
$ownerParams = @{
    "owners@odata.bind" = @($ownerRef["@odata.id"])
}
Invoke-MgGraphRequest -Method PATCH "https://graph.microsoft.com/v1.0/groups/$($group.Id)" -Body $ownerParams

Output:

Reference:

Using Microsoft Graph PowerShell authentication commands | Microsoft Learn