Uller
Adventurer
Maybe goblins do. The Monster Manual and spell entry for sleep don't say one way or another.
Can I ask you something? I'm not trying to be snarky or rude. Just honestly wondering...
What was the point of your OP?
I was operating under the assumption that you felt the result of group initiative and sleep was a bit quirky or odd and you wanted to see how other DMs would have handled it. Maybe I missed it...the thread is long...but it appears to me now that you have felt a need to defend your ruling against everyone who has expressed how they would have handled it differently or might handle similar situations in the future as if this is some sort of argument.
Was your ruling "wrong"? No. You didn't break any written rule. How the DM handles group initiative is left up to the DM. There is no wrong way. Whether goblns would know how to break magical sleep is entirely up to the DM. Whether they would bother to wake a sleeping comrade is likewise up to the DM. Whether a chain of three creatures using their action to wake sleeping comrades fits a narrative or not is also up to the DM...so your ruling was entirely correct, within the rules and valid by any objective standard.
You seem to have a need to argue about it with any who disagree.
Were your players cool with the way you ruled? If so...all is good. You be you.