I set up a group set with 20 groups. "Self-select" is checked. I can see them in my view--both in the group discussion board and in the "groups" tab in "people." However, once I hit "student view" in either of those places, the groups disappear. I can randomly assign students to groups, but they all lock out and students can't self-select. This worked fine last year. Is it a glitch in the update from two days ago?
Are your students actually reporting being unable to self-select? Regarding your troubleshooting, I'd be surprised if Student View could self-select into a group - I didn't think that was part of its functionality.