Group of switches doesn't turn off

I assume you mean MainUI. PaperUI does not exist past OH 2.5. It’s been replaced by MainUI since OH 3.0.

You need to give the Group a subtype to Switch.

label: All Lights
type: Group
category: light
groupNames: []
groupType: Switch
function:
  name: OR
  params:
    - ON
    - OFF
tags: []

You don’t necessarily need a function too but it is usually helpful. Without it when you command the Group it won’t change state and the UI won’t know if you’ve turned it ON or OFF and the UI element might not let you command it again.

How did you send this command? From the Item’s page, the Overview Page, the Scratchpad Script, Developer sidebar? All of these are options for sending a command to an Item through MainUI.

It’s coming from a binding. If you’ve not set up a Jinja transformation yourself I’m going to guess you’ve autodiscovered some MQTT Things.

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