Hi Joyce Saena

I checked internally with the team to better understand this behavior.

When a user shares a report within a group, only the report itself is intentionally shared—not the group. The reason for this is that the report owner may later change the group assignment for that report. Since report group creation and edits are managed at an individual user level, those changes would not reflect for other users.

This same behavior also exists for Classic reports.

Once all custom reports are fully migrated to the Modern view and we have a more unified experience, we plan to revisit this area and explore a more holistic solution for group sharing. For now, we are keeping this item in the backlog.

We appreciate your understanding as we work toward a more consistent experience.

This is still an issue as I've created groups for modern reports that are shared with other team members, but when they go into their custom reports, it doesn't show up in the groups that I've created on my end still. :(

Joyce Saena We have made few changes to custom reports grouping. Could you please check again and let me know if the issue still persists for you.

Joyce Saena We are looking into this. Will provide an update soon.