The composite pattern is not really what you need here since you admit yourself that the different levels of the hierarchy require different interfaces.
What you need is simple object composition (a grouping of objects to increase functionality) which is NOT the same as the Composite Pattern.
I think your different object hierarchies are relatively clear. Your confusion arises perhaps from the false expectation that all levels of your object composition need to share interfaces.
So a Group is a single step for ALL DUTs, right? Group 0 is Initialise essentially, Group 1 is Step 1, Group 2 is Step 2? This sounds like it may actually be a candidate for the Composite Pattern. Why not implement a Group as a Composite of Step with the same interface? This will allow you to treat groups and steps transparently. I don't know if that functionality would actually aid your development, I'm too far away to be able to judge that but it would allow you to have "Virtual DUTs" which are actually comprised of several individual DUTs.
Your functions are a completely different beast, as are your Actions. Again you could theoretically define Functions and Actions so that the Composite Pattern could apply. Again this would allow the generation of an Action which actually contains several other actions.
Part 1:
Base Class : Step
Child Class : Group (contains 1..N Steps)
A Step is an object which represents a stage of your testing procedure for a single DUT. A group represents the same thing but for 1..N DUTs. A group may contain other groups. A group and a Step can be used interchangeably within the program. The interface you would code to is that of the Step (Parent class).
Part 2:
Base Class : Action
Child Class : Function (contains 1..N Actions)
An Action is a single action (Set Voltage, Raise Alarm, whatever). A Function is also an action but contains 1..N other Actions. A Function can also contain other Functions (Hierarchical definition of test procedures).
So I could imagine (without in-depth knowledge of EXACTLY what you're trying to do) that you could use a combination of Object Composition (Action&Function or Step&Group) and the Composite Pattern (Step contains 1..N Actions) to achieve what you want.