Hi @trr_nv ...
You might have a slight misunderstanding of the terminology of Groups and Group Sets within Canvas. Think of it this way...
You could create a Group Set called "Project #1". Within that project, you would create Groups. Let's say, for example, that you had 20 students, and for this project, you wanted them to work on the project in teams of 4 ... so you'd have 5 groups of 4 students each (total of 20 students). You could name the Groups within the Group Set such as "Blue Team", "Green Team", "Red Team", etc.
Then, later on in the class, you could create a second Group Set called "Project #2". Within this Group Set, you wanted to have students work in pairs... so 10 groups of 2 students each (total of 20 students). For this project, you could name the Groups in the Group Set by NFL Team (or whatever your favorite sport was, for example).
So, in order to use Group Sets, you have to create Groups within the Group Set. Group Sets allow you to assign students to Groups...which are completely independent of other Groups in other Group Sets.
Does that help to clarify things? Keep us posted...thanks!