Yes, you can configure your Azure AD to sync user groups to LastPass, where they will appear in the User tab of the LastPass Admin Console. From there, the groups can be leveraged for assigning policies and shared folders.

Yes, you can assign as many custom groups to LastPass in Azure AD as needed.

If you add or remove users to a group in Azure AD, the change will be reflected in LastPass and an account will be provisioned or deprovisioned as needed.

No, users are automatically provisioned and will appear as live users.

When first deploying LastPass Business with Azure AD, you can set up a small test group in Azure AD. Once you’ve confirmed that provisioning is working as expected, you can test adding and removing people in the test group. Once all testing is successful, you can then assign LastPass to all groups, or the specific groups that will be using LastPass.

Users who are created via automated provisioning using directory integrations (i.e., SCIM provisioning or federated login) are automatically sent an activation code via email, which is required for finishing the account setup process. For this reason, the Don't send welcome email policy does not affect users created via automated provisioning.