I seem to have a conflict version with the template and permission names, which is probably why it was working on my installation.
1) Please substitute
library/XfAddOns/Groups/ModelOverride/Post.php
with the file attached to this post
2) It is possible that the template is not named correctly, if that is the case, please edit xfa_groups_usertitle and change from
Code:
<xen:if is="{$user.canUserTitle}">
<xen:foreach loop="{$user.groups_display}" value="$group">
<div class="socialGroup" style="padding: 6px; margin-bottom: 5px;">
<xen:include template="cz_groups_group_title" />
</div>
</xen:foreach>
</xen:if>
to
Code:
<xen:if is="{$user.canUserTitle}">
<xen:foreach loop="{$user.groups_display}" value="$group">
<div class="socialGroup" style="padding: 6px; margin-bottom: 5px;">
<xen:include template="xfa_groups_group_title" />
</div>
</xen:foreach>
</xen:if>
(notice the change to xfa_groups_group_title). Please try first only with the patched Post.php file
I have a 1.6 version that I never quite released. If I can wrap that up and release it I'll include the fix. In the meantime this patch should give you back the usergroups below the avatar with the new permission setting. Please make sure that not only "Number of groups under the nick" is set to unlimited but also the permission above "Can use a group name along the usertitle" is set to yes.