How can I use Item Level Targeting to query Azure AD Groups?

You cannot do this directly. However, we have a set of unsupported scripts which can help you do this.

We have videos for each scenario, which can be found here: Getting Started with MDM > Video Learning Center We recommend you watch all three videos

1. Using Netwrix Endpoint Policy Manager (formerly PolicyPak) Scripts to determine Azure AD Group Membership via Group Policy.
2. Using Endpoint Policy Manager Scripts to determine Azure AD Group Member via Endpoint Policy Manager Cloud.
3. Using Endpoint Policy Manager Scripts to determine Azure AD Group Membership via Endpoint Policy Manager MDM.

NOTE: Scripts are available in the Advice section of the Portal.