Hi Dave,
I realized that the distribution group (DG) was converted from a security group. To narrow down this issue, please help to check the following important points:
1. In Office 365 Admin portal, click Security Groups, check if the group is shown. If it is shown, continue to check if the problematic user is shown as a member.
2. Create a new distribution group and add the problematic user as a member. Sync the new DG to Office 365, and check whether the user can be shown properly or not.
Thanks,
Mindy Pan