There is documented optional query parameter 'deleteContacts' here: https://developers.google.com/people/api/rest/v1/contactGroups/delete
It is not working. I have group with two contacts on my test account. I deleted this group with parameter 'deleteContacts' set to true. Group got deleted but contacts remained. I tried official python api client and API explorer found on the documentation page and the results are the same.
Any ideas?