I am using MoodleCloud, but will use the on premise after evaluation.
My requirement is that students do not see other student full names, but can see teacher's name. And the teacher can see all student full names.
I am trying to set "Full name format" (Site administration > Users > User policies) to "alternatename", which would be set to something like "Anonymous user" for students, and real name for teachers. I keep "Alternative full name format" to "language".
I verified teacher has viewfullnames capability.
But he still does not see real names in forum, but just alternative names.