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I have just verified the below scenario as you said but didnt find any issue.
I have just created a User, Group and Applictaion Role under default authentication provider . Assigned user under group and group under newly created application role and provided access to answers for new application role under manage privilages and I am able see it.
This might not be a 126.96.36.199 bug check it from upgrade end.
Thanks Srikanth. Issue was with Authenticated users application role. When i deny access to Authenticated users and add an application role explicitly it does not show the answers for the users added in the application role. It used to work in 188.8.131.52 though. I raised a SR with Oracle and they explained this issue.