Thanks for confirming 'Browse Users' is enabled. Can you confirm the group that is permissioned in Global Permissions is the group which all you users belong to?
Does the autocomplete functionality work for users that are part of the 'developers' group but not for other groups?
If you use the 'Advanced' query option (just click 'Advanced' on the search screen') and type the following replacing <name> with the name of a known user:
reporter = <name>
Does the advanced option cause the autocomplete feature to work?
The other item I'd also like you to check is your Field Configuration: https://<instance>/secure/admin/ViewIssueFields.jspa?
Does this have 'Reporter' set as 'Optional' or 'Required'? You may have not required issues to have a reporter assigned.
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