I am a JIRA/space administrator and I cannot find the Manage Watchers functionality. Your online help says to click on Tools, but clicking on Tools for a space only displays the following selections: Configure, Copy, Delete. However, I have full abilities to edit anything in the space. Right now I am forced to enter each story(and there are hundreds) to manage watchers.
If I understand it correctly, you're trying to bulk add Watchers to your Issues? If that's the case, you can't do it from the Jira user interface, but you may want to see this thread for a workaround: can add watchers in bulk?.
The Manage Watchers permission in Jira refers to editing Watchers on a single Issue level. As for the documentation you're referring to in the original question, was it this article? If yes, mind that it's about Confluence, and not Jira.
Have you checked the project permissions? There are two permissions related to this that you will need: Manage Watcher List & View Voters and Watchers.
I haven't been able to find any bug reports or other reports of this problem, so I suspect the above my be the solution.
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