After checking this out a lot longer, I arrived at the following which may be normal behavior and not a bug actually. Try it and see if it works for you.
When calling GET https://graph.microsoft.com/v1.0/groups/group-id/transitivemembers/microsoft.graph.{entity}, you have to include the request header ConsistencyLevel=eventual then add a count operation to the request. Below is a curl for getting user transitive members and groups too.
The curl to list groups that are members.
curl --location --request GET 'https://graph.microsoft.com/v1.0/groupsgroup-id/transitivemembers/microsoft.graph.group?$count=true' \
--header 'ConsistencyLevel: eventual' \
--header 'Authorization: Bearer eyJ0...'
The curl to list users that are members.
url --location --request GET 'https://graph.microsoft.com/v1.0/groups/group-id/transitivemembers/microsoft.graph.user?$count=true' \
--header 'ConsistencyLevel: eventual' \
--header 'Authorization: Bearer eyJ0e...'