Symptoms
When using the "Add List Item Permissions" event to configure list item permissions for a user or group although it does not throw error, no permissions are assigned. The 'Person or Group (Name)' field from an item reference is used as per documentation: https://help.k2.com/onlinehelp/K2ForSharePoint/UserGuide/4.6.11/default.htm#List_Items_Wizards/Add_ListItem_Perm/Add_ListItem_Perm.htm
Diagnoses
#1 It was determined that when adding a user to assign list item permissions, the wizard is expecting the user to be in the format 'DENALLIXCodi' but the 'Person or Group (Name)' field in a list item reference is returning it in the format 'K2:DENALLIXCodi' and as such permissions is not assigned successfully.
#2 When assigning list item permissions to a Sharepoint group, it is just expecting the group name 'Portal Members'. Additionally, when using the Sharepoint 'Shared With' pop-up, it will not show the groups in which permissions were assigned but just the users that belong to these groups. This is a Sharepoint functionality. To see if the group is added, please click on the 'Advanced' option on the 'Shared With' pop-up.
Resolution
#1 To resolve this issue, an 'Inline functions > String > Replace' function was used to replace the 'K2:' portion with an Empty String() this returned the correct username format (DENALLIXCodi) in which the list item permission is assigned successfully.
#2 If using a 'Person or Group' type field, the 'Person or Group (Value)' field can be used as it would only return the group name 'Portal Members'. In this particular implementation, a 'Single line of Text' field was being used. It was determined that the group name was mistyped entering the correct group name resolved the issue.
A feature request was also logged such that when using a 'Person of Group' type field in a list item reference to assign permission, there will be another field that returns a non-K2 FQN name (i.e. 'DENALLIXCodi') for usage. The documentation will also be updated accordingly when this is implemented in a future update.