@NetDynAdmin that's because an ActivityPub group is basically just another regular account which boosts all the post it's tagged in. In order to have an account set as a group, you must check this setting right here:

Check any of the 3 options after checking "community group"

(Btw, I now saw the description for "Public Group - Restricted" and "Private Group" is basically the same - maybe someone should make things more clear there - I'm assuming the private group is also, as the name implies, private, for anyone outside it).

The group is created as a delegated account to the owner.

There's a help section describing this here and a video tutorial below if the user is more curious about how the said group should work:

youtube.com/watch?v=R6JIXwXQ75…