From a related post I was tagged in, the question was asked how to automatically create groups based off of sections in a course, Automatic Group creation for students in same section. I took some time and wrote up a script in Python 3 that based off of a course ID and group category name it will do the following:
Create the Group category with the name you specified
Get a list of sections in a course along with the list of students in each section
Create groups based off of those sections
Create the membership for each student in the group
The one thing that this doesn't do is maintain the groups if a student enrolls in a course or if a student is moved to a different section. Those tasks will have to be done manually but when initially ran it will be fairly easy to make those small changes from within Canvas.