TLDR: Talk to the Team.
Keep in mind the four core principles of the Agile Manifesto, particularly the very first one:
Individuals and interactions over processes and tools
Of the four principles, the first is the only one that directly suffers from having a distributed team. And from your question, it seems like you're trying to solve this problem by implementing a process. If you look again at the first principle, it should become apparent why this is problematic.
With that thought in mind, let's walk through your three issues:
Backlog grooming meeting is not working as they want to design the solution during the meeting. They want to estimate only when they understand and have largely designed the solution
Best, I think, to first break this down into why this is a problem. What is the purpose of your Backlog grooming meeting? And, importantly, find out what your Development Team views its purpose as being, as this may be different. Is it just to follow your procedure, as mandated by... your procedure? If so, then the issues become apparent. Is it some other, actually useful purpose, for example, as @Mark C. Wallace suggested, to develop plan, priorities, and/or architecture? If so, bring your concerns to the Development Team as to how this purpose is not being met, and ask the Team for suggestions on how to fix it. Any suggestion created internally, or collaboratively, is going to be accepted far more readily than one imposed on the Team from above.
They want to take 'breaks' to discuss things in their native language
Other than getting a new Team that speaks English, there are really only two solutions to this. Either the Team improves their English (you could, for example, send them to a class of some sort, ideally on Company dime). Or you could improve your (insert foreign language here). Or both.
They don't want to create user stories themselves which is fine, but they don't agree with the way the PO splits the stories either.
As always, collaborate. Find out why the Team doesn't like how the Product Owner is splitting the stories. Maybe they're wrong. Maybe the PO is wrong. Maybe they're both wrong. The only way to find out is an open discussion, with no pre-existing bias. One goal you should probably approach is obtaining a shared understanding of how stories should be sliced. One approach is simply to cut them as small as possible while still on their own being able to provide business value. Another approach is to follow the INVEST mneumonic.