Selected SharePoint group will display as another user when user name contains group name

Category

[ ] Enhancement

[x] Bug

[ ] Question

Version

Please specify what version of the library you are using: [3.14.0]

Expected / Desired Behavior / Question

Create a user named Adelve Vance, and a SharePoint group named Van.
Add a PeoplePicker as flollowing:

<PeoplePicker
    ....
    defaultSelectedUsers={loginNames}
    principalTypes={[PrincipalType.User, PrincipalType.SharePointGroup]
/>

Input Van in PeopleSelector, and select group Van from options, record group login name Van to loginNames, PeoplePicker will change the displayed Van group to user Adelve Vance immediately. If we leave the defaultSelectedUsers empty, when this PeoplePicker inited with Van group name, it will display people Adelve Vance not groupc Van either.

Start by reproducing the issue in the PeoplePicker with a SharePoint group named Van and a user named Adelve Vance, using defaultSelectedUsers and both User and SharePointGroup principal types. Trace the selection and initialization handling to determine why the group is displayed as the user, then verify that the selected Van group remains displayed as a group in both flows.