Without any further info on how you are "getting the next @groupid"....
update pg
set pg.products_xml = x.xmldata
from product_group AS pg
cross apply (
SELECT id, name, price
FROM product
WHERE product.product_group = pg.product_group
FOR XML RAW ('Product'), ROOT ('Product_Group')
) AS x(xmldata)
where pg.product_group in (select some_product_groups from somewhere)
MM
select geometry::STGeomFromWKB(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