IRM Policy Template [Users and Groups]

Hi, I am onboarding an IRM policy using a template. Need some assistance on below: 

• Does IRM only supports Groups with Type: Distribution List as Other group types (like Security, Dynamic etc.) are not accessible from IRM policy config?
• Do we only have option to include users/groups as policy template doesn’t have exclude tab (e.g., in DLP - Locations)? That means we would need to create a new group after excluding specific users.

Thanks