David Zagury sent me a screen shot on Twitter of AdWords launching a new feature in the new AdWords interface to create dynamic search ads as groups in standard campaigns. In the screen shot you can find a check box to "enable dynamic search ads for this campaign" and then you can set up an ad group for this group type as dynamic.
Here is David's screen shot:
@rustybrick Spotted, we can now launch DSA as groups in standard campaigns using the new Adwords interface! pic.twitter.com/gFz1Tsp40y
— David Zagury (@DavZag) July 5, 2017
Forum discussion at Twitter.