Identity IQ 6.3 and later
The application involved is a Windows Local - Direct application. There are Active Directory groups as members of local groups.
After doing an Account Group aggregation, the members of local groups do not show in the Group Properties window for an entitlement in the Entitlement Catalog. This happens after upgrading to 6.3.
As of Identity IQ 6.3, the GroupMembers attribute changed to be MemberGroups.
Modify the Windows Local application's Group Schema and change the GroupMembers attribute to be MemberGroups. Then re-run the Account Group aggregation.