How to use Entra groups to set up team hierarchy as groups

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I'm trying to find a good solution for implementing/managing a project's team structure with Entra.

The project has the following ideal hierarchy and I want to implement this somehow in Entra.

members in parenthesis

  • The Project (PersonA, PersonB, PersonC, PersonD)
    • Application 1 (PersonA, PersonB, PersonC)
      • developers (PersonA, PersonC)
      • support (PersonB)

The ideal solution would hit the following goals

  • When you delete a person from a group, they are automatically removed from the nested groups
  • Any person in a nested group must also be a member of the parent groups

The two things I've come across are dynamic group memberships or nested groups

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