Three options compared. Recommendation, reasoning, and the trade-offs the system has to live with.
"+ Add group" sits next to "+ Add condition" from the start, regardless of rule complexity.
"+ Add group" appears only once the rule has three or more conditions. Surfaces complexity when complexity has already arrived.
"+ Add group" hidden until the user flips an Advanced mode switch. Mode toggles the whole editor experience.
Progressive disclosure beats mode toggles because it tracks the user's actual complexity, not a self-reported skill level. By the third condition, the user has already proven that the rule isn't trivial. Showing them a way to organise it at exactly that moment is helpful. Showing it on first load is noisy.
The trade-off is discoverability. A user who never reaches three conditions may not learn that groups exist. We accept this because users with simple rules don't need groups, and users with complex rules will hit the threshold organically. The cost is a help link or one-time tooltip the first time the button appears, which is far cheaper than maintaining a two-mode editor.
Edge cases flagged for later: deeply nested rules (groups inside groups) are out of scope. If they become necessary, the visual nesting will break down at the second level. At that point the right answer is probably a saved-rule reference inside another rule, not deeper visual nesting.