Grounding locks the origin (not the geometry) of the grounded component to the top level origin in that design.
If an assembly with one, or more grounded parts is inserted into another assembly, now the previously founded parts in that assembly are floating.
That is where many people get confused.
Rigid grouping a component also locks the origin of the involved components together. If that involves the top level origin in a design than the effect is the same as grounding.
The difference is that this relationship is maintained when that assembly is inserted into another design.
The advantage of grounding is that it removes the grounded component(s) from the joint solver calculations so in assemblies with many moving parts this can make a significant performance difference.