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I've participated in many group interviews both as a candidate and an interviewer. In my current company, interviews remind me of formal recruitment, except the rotation patterns were more obvious!
Unless someone asks you directly, the relocation issue can be part of the negotiation at the next stage. I wouldn't bring it up (that might be a strike against you if you are compared to someone who IS willing to relocate anywhere). Focus on other strong points.
Pros of a group interview are that it gives you a flavor for the dynamics of the group you may be joining. Cons are the sheer intimidation factor... my first panel interview was me and 12 people, none of whom I'd ever met before and I was not exactly prepared for it. It was a good learning experience and I did better the next time.
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