How to send Outlook 365 emails to an iCloud group?

Running Outlook 365 on my Windows 10 PC. Linked iCloud to Outlook. In outlook I see my iCloud contacts:

When creating an email and enter a name from the iCloud contacts in my To: field it pops up fine.

However, when I try to enter the group name it doesn’t see it. By selecting this group contact folder and doing “properties” I can click the box “show this folder as an email address book” and then I can click the To: and change my folder to the group contact folder and add my names from the group.

This works (sort of) but isn’t really an email distribution list.

My question is can anybody explain specifically how to create an email distribution list that Outlook 365 can use, when the contacts are stored in iCloud contacts?