All the child Image blocks inside a Group block are not set to Full width when the Group block is set to Full width.
Group block.Image block inside the group block.Group block to Full width.The image blocks are set to full width, as is the case when the Image block is used individually (outside of a group block)

The above image is of an Image block outside a Group block, and that Image block is set to Full width. See how it covers the entire display?
The image is not set to full width.

I am using Gutenberg 5.7.0-rc-1 on a Pressable site, with Google Chrome Version 74.0.3729.131 (Official Build) (64-bit) on macOS 10.14.4 - Mac OS Mojave.
I am not entirely sure if this is an intended design, but thought I might flag this up anyway.
I think that might be the expected behavior because even a group is full width not all of its images should be show full width. You might one to center everything and only show one single image full-width...
Closing by pinging others to confirm @kjellr @jasmussen
Based on a decision during the development of the group block, this behavior is intended.
I can understand the confusion though — the centered main column is sort of a property of the post content container, moreso than group blocks themselves. But I recall discussing this with Kjell, and he had some very solid arguments for this behavior, and ideas for what to explore in the future to help set expectations.
I recall discussing this with Kjell, and he had some very solid arguments for this behavior, and ideas for what to explore in the future to help set expectations.
Yep. This isn't the exact same scenario, but it's related: in  https://github.com/WordPress/gutenberg/pull/14908 actually has a new enhancement built in that will ensure that grouped blocks start out with the width of their widest child. So consider the following process:
Using that new PR, your new group block will be full width automatically, and the image inside will still be full width too. This should result in no visual change to the child blocks when they're grouped.
The issue above is also likely complicated by the fact that the core themes (based on the font I see in the screenshoot, I'm guessing this was with Twenty Nineteen) are not currently up to date to work with the Group block. That is coming soon, and tracked here: