yep, i'm confirming the same thing you are seeing,
i cannot map a domain group to a remote login, even if i know it exists as a login on the server.
i think you'll end up having to iterate thru the current members with xp_logininfo , and script out the grants for them them individually.
EXEC master..xp_logininfo @acctname = 'disney\dev',@option = 'members' -- show group members
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