Regression in Azure Transitive Memberships in v0.0.35

Hello,

I’d like to report a regression introduced in version v0.0.35 of the Group Sync Operator. Specifically, Azure transitive group memberships are no longer functioning as expected.

After upgrading to v0.0.35, I noticed a significant drop in the number of transitive users being resolved. For example, in one environment:

• v0.0.34 correctly resolves 136 transitive users
• v0.0.35 only resolves 58 users, which appears to be a strange and inconsistent subset

There are no errors logged, and the operator does not appear to fail outright, but the behavior is clearly incorrect. I attempted to pinpoint the exact cause but didn’t have enough time for a deep dive. Rolling back to v0.0.34 consistently restores the correct behavior across multiple projects and clusters.

Please let me know if there’s any additional information I can provide to help troubleshoot this issue. I’d be happy to assist with testing or logs if needed.

Start by reproducing Azure transitive membership resolution with the same setup across v0.0.34 and v0.0.35, comparing the resolved user counts and available logs. Trace the transitive membership path to identify why v0.0.35 returns an incomplete subset; done means the regression is corrected without errors and the expected memberships resolve consistently.