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Groups and Sharing

I am a bit confused as to exactly how the groups should work.

Basically I am trying to setup a group that all users get when they login and shows all users on the server in said group.

I have created the group, enabled contact list group sharing, set the contact list group name, checked “share group with additional users” selected “all users” radio option and then saved.

However unless I manually add a user to the group they do not see the group (nor does it show anyone not manually added to the group).

Is it possible to do what I am trying?