No group selection available when creating new user in NC version 31.0.5

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Steps to reproduce

1. Create new user
2. Try to add user to existing group while creating the new user
3. See that no groups are shown in the pull down menu, only "No results" is displayed
4. If you type in the existing group you get an error saying "group exists"

Expected behaviour

Get a list of available groups and be able to reduce the selection of available groups by typing in the beginning of the group name.

Actual behaviour

No groups are available, error is displayed if group name is typed in and selected, and user have to be added to existing groups after creation of account in a second step.

Server configuration

Web server: Apache

Database: MySQL

PHP version: 8.3.21

Nextcloud version: 31.0.5

Start by reproducing the issue through the create-new-user flow in Nextcloud Circles version 31.0.5 and inspect the group-selection dropdown. Done means existing groups are listed, filtering by the beginning of a group name works, and selecting one does not produce a “group exists” error.