Hi, they add on top, they don't replace. Permission sets from a security group, from direct assignment, and the defaults from the license all come together as a union, and then the license entitlement sits over the whole thing as the outer limit. That is why a Team Member user with SUPER is still a Team Member, the entitlement cuts it back and no permission set can push past it.
Second one, yes. Search License Configuration in Tell Me, pick the plan and set which permission sets are assigned when the user is created. You can also empty it completely, which is what I would do if everything should come from security groups, otherwise users end up with the license defaults plus the group sets and nobody can tell where an access came from.
The Effective Permissions page shows which set gave what, that saves a lot of guessing.
Glad to help - follow up if anything is unclear.
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Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis