There are a lot of email notifications in the system that can be activated/deactivated so it depends on how your's is set. We don't generally do notifications to users regarding Projects so I'm not really familiar with those, however, I believe that an email would NOT go out to a Team or Group, but if an individual was assigned, if the email notification was active, that they'd get an email. Unless someone can answer this definitively (and there probably will be somebody, what I usually do is just set up a quick test - set up a project in planning status, assign some teams and individuals, convert the project and see who got the emails.