Distribution List OR Azure Active directory for Power BI app access

Hello

I want to give access to users of my Power BI app through DL (distribution list) or Azure AD(Active Directory).

But I am confused about which one I should use.

My Power BI backend model is made in PBI desktop and as of now my source files are on my local system, we are planning to move these files to ADLS (Azure Data Lake Storage), though the backend model will still be in PBI desktop just the file source will change to ADLS.
If I use DL and once we move the files to ADLS then would the users be able to access the PBI dataset if they are just in DL and not in AD.

Please help in clearing the confusion regarding AD and DL.