Cant create Custome Groups, Or edit Profile on the client

We are using Openfire 3.7.0 with LDAP authentication. There are few Groups already created in the LDAP directory, which Pandion fetches without any issues.

With Pandion 2.6.106, I am not able to create custom groups, move users to custom groups, Change Profile details (like custom first names, lastnames, etc)

I have also tried this in Spark and i cant edit any profile details or custom groups.

Is there any setting in Openfire which allows Clients to create custom groups and save them locally ??

Kindly advise a fix.