Here Manish, Zia, Kyan is member for both groups. So For them both groups will show to select when send message. Please check if shown for them.

Other users are only in 1 group. So for them groups will be hidden and all message for group will send to Everyone group. Please check if groups are hidden for them and if they send to group, that message is send to Everyone group directly.

If not working right, please let me know what is not working.