Прошло два дня, и я наконец нашел решение.
import play.api.libs.json._
import play.api.libs.functional.syntax._
final case class GroupEntity(label: String, items: Map[String, Entity])
final case class Entity(label: String,
propertyType: String,
groups: Option[Map[String, GroupEntity]])
implicit lazy val ge: OWrites[GroupEntity] = (
(JsPath \ "label").write[String] and
(JsPath \ "items").lazyWrite(Writes.map[Entity](e))
)(unlift(GroupEntity.unapply))
implicit val e: OWrites[Entity] = Json.writes[Entity]
implicit lazy val ger: Reads[GroupEntity] = (
(JsPath \ "label").read[String] and
(JsPath \ "items").lazyRead(Reads.map[Entity](er))
)(GroupEntity)
implicit val er = Json.reads[Entity]