You can name groups using group/{name} syntax, allowing you to differentiate between nested groups and target specific parent states with group-hover/{name}:.
<li class="group/item flex justify-between">
<span class="group-hover/item:text-blue-500">File.txt</span>
<button class="group/delete opacity-0 group-hover/item:opacity-100">
<span class="group-hover/delete:text-red-500">Delete</span>
</button>
</li>