I'm trying to assign a ticket to a user. When I click on the arrow to expand the drop down list, only users under the Suggestion list show up. The rest of the users don't.
I think this is your issue:
https://answers.atlassian.com/questions/47244/why-can-t-i-assign-an-issue-to-a-user-who-should-have-permission?page=1#47308
Basically, Jira 5 has a new feature that only shows the 'most used' or 'recommended' users to be assigned.
If you type a letter of the username it shows the corresponding on the list.
Check the answer I indicated to make sure.
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