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Line routing not consider for group nodes. Please find the below steps to replicate the issue.

1. Set the diagram constraints with LineRouting.

public diagramConstraints: DiagramConstraints = DiagramConstraints.Default | DiagramConstraints.LineRouting;

1. Create 4 nodes:

Node 1 is connected to Node 2

Node 2 is connected to Node 3

Node 3 is connected to Node 1

Node 3 is connected to Node 4

2. Then create a group node with Nodes 1, 2, and 3 as children

3. Trying to move/drag the group node, and group nodes do not move.