Is there a way to give users the permission to assign any issue to themself when the issue is unassigned?
We do not want normal users to be able to assign issue to other users, except unassigned issues to themselfs.
Jira can't do this directly. The permission is too blunt - you can either assign an issue (to anyone who can be assigned) or you can not. There's no in-between like "can assign to myself, but not others"
I've seen people work around this in the workflow, although mostly for simplification reasons rather than permissions. It's very common to see a transition like "New -> In progress" have a post-function on them that says "assign issue to the person who put it into in-progress, as they've chosen to work on it".
What is your setting for "Assignable users" in the permission scheme of that project?
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That is application access, not Assignable User... just trying to understand by what mechanism you are controlling who can be assigned a ticket. If any user can be assigned, what is blocking them assigning it to themselves? A workflow condition?
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