I think that your faculty member is making this far too complicated.
First, looking at the Test Student isn't helpful in this case. The Test Student can't join a group, and there's no point in looking at the Student View.
I put my students in Groups all of the time for group discussions. I know that there is an option for students to self-select groups, but I think it's A LOT EASIER for the teacher to create the groups and put students in them. For example, I have placed my students into three groups: Blue, Red, and Yellow.
Once the instructor has put the students into Groups, the student will automatically see that he or she belongs to the Blue group (or the Red group or the Yellow group). And, then all I have to do is set up the discussion or assignment to be done in Groups.
Is it really necessary for the students to "self select" their Groups? The instructor can make all of this MUCH SIMPLER by just placing the students in Groups. It would only take five minutes for the instructor to do this, and it would eliminate all of the confusion.