Background info
TFS use a background synchronization job, scheduled every hour, to look for changes in Active Directory (or the local machine workgroup if the server is not domain joined). You can force the job to run using any of these techniques.
It could be that you still do not see the user or name listed in the UI even if synchronization is working. The synchronization job does not automatically creates a user profile in the database for every user or group in the database, to avoid useless growth in big enterprises.
The solution
In such a case, the first time you use a new AD account (user or group), you must refer to it using DOMAIN\account
syntax so that TFS look up in AD on the fly and insert a profile record in the database for the account.
Further Troubleshooting
Mr. Hinsh has a good troubleshooting guide if you still have troubles.
SCOPE
of the AD group. I don't remember without looking but if it'sDOMAIN LOCAL
, change toGLOBAL
or vice versa... I think it'sGLOBAL
so give that a stab, and then refresh TFS just to be thorough and then see if it'll see the AD group afterwards. Some of this may depend on your domain functional and forest functional levels as well.