XF 1.3 Conversation recipient limit/permission issue

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A few members are complaining about only being able to send conversations to 2 members (my setting for new members) at a time, despite the fact that they are regular members and their limit should be 8.

Is this likely a bug or a conflict with an addon? Any suggestions?

Here's a screenshot analyze permissions for the user and usergroups settings:

Screen Shot 2014-06-03 at 8.40.57 PM.webp
Screen Shot 2014-06-03 at 8.43.18 PM.webp
 
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