Microsoft’s consumer online storage service OneDrive had a neat feature called OneDrive Groups. OneDrive Groups allowed users to create a central store that can be accessed and co-owned by multiple people. When a OneDrive Group is created, 1GB of storage is allocated for a Group apart from your personal OneDrive Storage. Microsoft has now removed this feature from OneDrive and instead asks users to use Shared Folders to get similar functionality. Also, Microsoft confirmed that existing OneDrive groups will continue to function as they did in the past.
I understand that you can no longer create a new OneDrive group due to the error message you received. Please be inform that the creation of new OneDrive group is already discontinued.
However, you can still invite new contacts to existing OneDrive groups.