QCS has the ability to publish Query Based Groups, but it was observed that when publishing such an object it will create a regular local group instead of a Query Based Group. Will this break the functionality?
This is expected behavior and it will not affect the functionality. For more details please see the Resolution part.
A Query Based DL operates the same as a standard group. The publisher will update the group membership periodically based on QCS settings and send the updates to the subscriber when changes are made. On the subscribing side QCS will create a standard distribution list and not a query based distribution list.
Important: When publishing Query Based DLs, it is important to publish the group with group members (see attached screen shot), otherwise membership will not work.