These steps have worked for me to get groups to show up in my gradebook.
HOWEVER, when I set any of my courses to Visibile or Separate groups, then students who are grouped in these courses cannot see their final grade -- it displays as " -- " and this is not resolved until I change the Course setting back to No Groups. So for now I am forgoing having the groupings appear in my grade book until I can figure out how to ensure students can see their course grade with the Course set to a grouping mode.
But again, thanks for your clear steps!