Quoting from Wolfram definition of group action -
In general, a group action is when a group acts on a set, permuting its elements, so that the map from the group to the permutation group of the set is a homomorphism.
Is it always that when a group acts on a set it will always permute its elements? Like permutation word comes up then I can think of permutation group $S_{n}$, but like what happens when some other group acts on the set?
Also, a map from the group to the permutation group of the set is a homomorphism is like saying that there is a homomorphism between the group and the set of elements, hmm is it intuitive?
Also are there any stunning group action applications or visualizations?
If a group $G$ acts on any set $X$, the reason that the action of a group element $g \in G$ is a permutation --- i.e. a bijection --- is because it has an inverse, namely the action of $g^{-1}$. By definition of group action, the action of $g \in G$ followed by the action of $h \in G$ is equal to the action of $hg$; that's why we say the action is a homomorphism.
As a consequence, the action of $g$ on $X$, composed with the action of $g^{-1}$ on $X$ is equal to the action of $g^{-1} g = \text{Id}$ on $X$, which is the identity map. Similarly the action of $g^{-1}$ composed with the action of $g$ is equal to the action of $g g^{-1} = \text{Id}$. It follows that the action of $g$ is a permutation.
As for "stunning" examples, any time you have a highly symmetric object, i.e. the 2-sphere $S^2 = \{(x,y,z) \mid x^2 + y^2 + z^2 = 1\}$, the symmetries of $S^2$ form an interesting and often useful group. In this case, the symmetries of $S^2$ are the orthogonal group $O(3)$, the group of $3 \times 3$ matrices $M$ such that $M M^T = M^T M = \text{Id}_{3 \times 3}$. The usual vector multiplication formula $Mv$, restricted to unit vectors $v=\langle x,y,z\rangle$, defines the action of $O(3)$ on $S^2$. There are many, many other interesting actions like this in geometry.