I have a user in Azure DevOps who is trying to add another user to a User Storie in Azure Boards, but when he finishes typing the user and autocompletes, that user in the field automatically appears the message

Azure DevOps - Error: Access Denied: needs the following permission(s) on the resource Materialization to perform this action: Edit identity information, Manage group membership

I tried to change the user's permissions in another permission group by setting them to contributor without any success.

Can you help, please?

Set user in Contributors; Create another group of permissions; User is not Stakeholder, is Basic

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Kevin Lu-MSFT On

Refer to this ticket: Error message when trying to add a Team Member

The cause of the issue is that the Product Team made some changes to boards a few weeks ago. it leads to issues of identity.

Now, Product Team has reverted the change that was causing the issues with assigned to.

You can try to assign to the users in the work item again and check if it can work.