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Lois,
You said the question stated “The statement you flagged means that one user, one service principal, and one group each have the role assigned directly” which is not.
Instead, The question stated, “The Monitoring Reader role is assigned to the user, service principal and group.”
How can you guess ‘the user’ is TD3?
Also, role assignment can be done to users, groups and the notification type of Alert is ” Email Azure Resource Manager Role. So the email goes to any user or group who has Monitoring Reader role.