Venafi Encryption Director 14.1 and above
In Director 14.1 and above AD Distribution Groups can be assigned to any Contact field. Distribution groups cannot be used as an approver if the group is not security enabled. When we create workflow tickets, we assign rights to the group that is an approver. In order to assign rights, we require a Security Principle Name. Distribution groups that are not security enabled do not have a security principle name. That is why when we implemented the ability to make Distribution Groups as contacts in Director 14.1, we didn’t allow that type for the Approvers field.
Currently, We're not adding support for SMTP email addresses to be assigned.
The workaround of creating local accounts for SMTP email address contacts still applies. The new feature only applies to Contacts. You will still need AD Security Groups (or assign individual users) for Approvers and Rights because both of those require security principals.