I have been able to create a new user group, and even to assign it to spaces, however the users linked to this new group are not able to log in with read-only access (which is the outcome I looking for).
Go to your Admin Confluence Settings. (gear top menu bar) General config.
Select Space Permissions (left menu bar)
Find the space and click "Manage Permissions"
Edit Permissions for the user experience accordingly.
Keep in mind - As a default, whatever Restrictions are set on the Front Page - will carry through to subpages.
Hope this helps!
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