The option, "Local Group on SQL Server" is no longer available in the Database Wizard
With versions prior 2.5, if you use the Database Wizard to configure the database and security groups, there was an option to use "Local Group on SQL Server" so the groups did not have to be created in Active Directory. Why is this option no longer available with 2.5 and later?
The local group option for the security group was never a recommended configuration as it would cause Access Explorer to be completely unusable. The option has since been removed from version 2.5 and later as it breaks functionality.