I assume you might be talking about Cloud.
If yes then,
>>1. User can see Developer Group only.
Yes user will be able to see only those which will be assigned to them.
>>2. When creating vm users can select only Developer Group.
Once the server group is assigned to them then they can create vps in the server which belongs to that particular server group only.
>>3. User can list the vm created by users themselves only.
Yes, They will be able to view only the vps created by them.