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I heard that Approval inside the flow has some limitation for 50 people - is that true? So If I have a flow with 49 approvers it would work. In another case if I have 51 approvers it will be errored - I dont want to test and check that with so many accounts.

Same for the o365 groups? Is there any limit regarding that?

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I don't know of a specific number, but the documentation says, "Approvals that rely on custom responses can fail if they're sent to many users with the type set to Everyone must approve. This failure is due to data size limitations of the results field." See: https://learn.microsoft.com/en-us/power-automate/approvals-known-issues#approvals-with-custom-responses-set-to-everyone-must-approve

I suggest a practical approach would be to start with a smaller number of approvers and gradually increase it until you find a balance that works without causing failures. A good starting point might be around 10-20 approvers. If that works, you can try increasing the number incrementally. If you encounter failures, reduce the number of approvers until the approval action succeeds. This trial-and-error method can help you determine the optimal number for your specific scenario.

Based on the link above, if you're using first to respond, it doesn't seem like that has a limit to the number of approvers since the issue is related to storing the results. With the first to respond, there is just data from one response to store data. It also specifies when it is used with custom responses, so maybe it is only a problem with the combination of everyone must respond and custom responses.