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XF 1.5 Newly Registered User Group?

#1
This is kind of a weird post - but first is Newly Registered a default usergroup with XenForo?

We imported from vBulletin and I think over there, "Newly Registered" were the users who never verified their email address.

But my brain gets so overwhelmed and foggy at this point, because (for example) a user today asked why he couldn't change his avatar. Turns out he's been posting for a year, but he's still in "Newly Registered" usergroup.

First question is why is he able to post if he never verified his email address?

Second question is, I wonder how many of my legit users are running into random errors because they are also in this group. I can't just move everyone into "Registered" because there will no doubt be a lot of spam accounts in there. Not sure how to proceed... making sure there aren't some legit people in there.

edit: PLOT TWIST! "Newly Registered" usergroup has "Change Avatar" set to "Allow".
So why did he get an error?
 
#3
@Brogan - We have about 10,700 people in the "Newly Registered" group so its a bit risky to move them (may be a lot of spam accounts), but how would I go about just moving the whole group into "Registered" ?