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Updating 'sys_acl_levels_members' as instructed has made no difference!
I still have below problems...
1. I don't see a settings wheel to the far right of each account in Studio>Accounts
2. In the Home view users only see content from other members who have their "Visible to = Public". Content from members with it set as Friends or Relationship do not show (even though they are Friends & Relations to the other user). The missing content shows up in the Dashboard view though!
3. Profiles from Friends/Relations cannot be viewed (Access denied. This content is private) unless the 'Visible to" is Public
If the 'role' column in 'sys_accounts' table is set to 3 (Operator) users are not effected by 2 and 3 above.
So it seems all users are being treated as Guests unless the 'role' in sys_accounts is set to 3 but no idea why Studio>Accounts not showing the settings wheel (I tried different Browser incase it was that).