M365 groups are to me the cornerstone of security in the M365 environment.
As such here is a brief overview of what I refer to as the fab 5 of M365 groups:
Distribution group - Utilized for sending notifications to a group of people.
Mail-enabled security group - Has the ability to send e-mail to a group.
Microsoft 365 group - Utilized for collaboration. Includes a group e-mail and shared workspaces.
Security group - Utilized for granting access to resources and for managing devices.
Shared mailbox - Utilized when multiple users need to access the same mailbox, such as a contact us or support e-mail address.