I have an AD Group inside a SharePoint Group, and a Person or Group field that's choosing from the SharePoint Group. When I look for a person that's in the mentioned AD GRoup, the person is not being found. I have run multiple Full Syncs and IIS Resets, and made sure the User PRofile is also syncing Groups and pulling from the right containers, but nothing fixed this. Any ideas?
Per my test, the result is the same.
If you choose from SharePoint group which includes a AD group, it will only show the AD group instead of individual users in AD group.
As a workaround, you need to choose from All users, or add users existing in the AD group to the SharePoint group individually.