Separate naming policy for O365 groups and DLs
Please separate out naming policy for Office 365 Groups from the Distribution Lists that are coming from on-premise AD via ADConnect. Currently the same policy applies to both O365 Groups and DLs. It would be better to have separate policies for Groups and DLs. Also note that email address does not get the policy prefixes applied.
You use a group naming policy to enforce a consistent naming strategy for groups created by users in your organization. A naming policy can help you and your users identify the function of the group, membership, geographic region, or who created the group. The naming policy can also help categorize groups in the address book. You can use the policy to block specific words from being used in group names and aliases.
The naming policy is applied to groups that are created across all groups workloads (like Outlook, Microsoft Teams, SharePoint, Planner, Yammer, etc.). It gets applied to both the group name and group alias. It gets applied when a user creates a group and when group name or alias is edited for an existing group.
See here: https://docs.microsoft.com/en-us/microsoft-365/admin/create-groups/groups-naming-policy?view=o365-worldwide