Yes. Permissions are fine as user can ignore forums and threads from the button at the top but not longer via the buttons on each thread in the thread list.
It was all working until 4.0.6
On my test forum I uninstalled 4.0.6 Installed 4.0.5 and set up permissions and options . All fine
Install 4.0.6 and all working but without thread list or new list.
Test forum 4.0.5:
After updating to 4.0.6 same user, same permissions and options
Same issue with all other addons disabled and default style.
Ah. I see now. I can confirm there must be a bug. It works on my live style but not on the default XF or dormant styles. I "think" I must have manually added code to my templates (not sure what though, I sometimes lose track of all my edits )