Group Import Member and Owner Reference Unavailable

Hello, 

I am having an odd issue. I created a new MA from AD to MV. It is looking specifically at an Applicaiton Group OU, There are only SG in there. When I do the import, then a sync, two fields are giving me errors

Member and ManagedBy, they both say reference is unavailable. 

No the users already exist in the MV, but is is giving me the error because I am not allowing the MA to look in any other container besides where the application group is?

I am not sure, I checked the precedence, I have tried with both equal precedence and letting this MA being the upper precedence.

Any ideas what may be causing this error?

There is no code, I am doing a direct flow.

Thanks 

Russell Lema