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I'm not quite sure why the New dropdown link is missing within the People and Groups section when i'm logged in as the Site Collection Administrator.

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This is because you are looking at "All People", it is not a SharePoint Group.

If you want to add users/groups here, you have to go to the "Site Permissions" page from "Site Settings" and grant permissions explicitly.

If you want to add users to a group you can visit that group by clicking on it from anywhere you see it in SharePoint.

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