no, here’s what happens, or at least this is how it used to happen. When you send the e-mail, notes breaks down large lists of names into parts it can handle. So let’s say there are 900 recipients total within all of the nested groups. Notes takes those 900 names and splits them into 3 groups of names. Then the 3 groups are processed and duplicates are trimmed within each subset. So if John Doe is in several of the nested groups he may wind up in any 1, 2, or 3 of the subsets and as a result may get up to 3 copies of the message. Maybe ND8 will handle this differently.
My experience is that more recent versions of Notes do a far more extensive job of eliminating duplicates than earlier ones. I believe it is based on client version, not server version.