Direct Reports not listed in Team Learning Center or Team Goal Center

We're facing an issue with manager not being able to view employees/reports under Team Learning and Team Goal Center. We cannot assign learning via direct reports specific person - the people are not searchable.

The manager and reports are "linked: They are viewable in Team Activity center and Person search:

Team Learning overview:


Assign Learning: Can't find any direct reports:

Learning can be assigned via: Learning Catalog → Course → Assign to all direct reports.

The problem is probably around security but I have also tried to update security policies and create new custom role for the Line Manager, but its still not working.