When we setup a course or an activity with separate groups and login as a user without a group set, we can see at the top of the activity "Separate groups: All participants"

The issue is that most of the time activities will deal with this users a bit differently and the most common implementation (Forum for example which is set as an example for group behaviour) is to make sure that user not in a group cannot see entries of any group or those of users who are also not in a group. This means they usually cannot see or interact with entries that require group membership.

The entries created by non-grouped users will  they will be treated as a "pseudo-group" separate from actual groups. However, these entries may not be visible to anyone else, including other non-grouped users, unless explicitly configured.

The issue with labelling the user "status" as Separate groups: All participants, is that it does not reflect the current user's situation, a label like Separate groups: No group (or something like this) would be better.

I have set the component of this to "Groups" as there are two core method that will display this at the top of each activity/course:

• groups_print_course_menu
• groups_print_activity_menu

• Create a course with Separate Group mode and Force it for all activities.
• Create 2 students S1 and S2 and three teachers (T1, T2, T3)
• Create two groups G1 and G2
• Set G2 to Membership visibility to Hidden
• Add S1 and T1 to G1
• Login as S1 and go to the database
• You should see "Separate groups: G1"
• Login as S2 and go to the database
• You should see "Separate groups: All participants" (This is wrong as this user cannot see all participants and is not in any group)
• Login as T2 and go to the database
• You should see "Separate groups: All participants" (This is wrong as this user cannot see all participants and is not in any group)