Is Banned Group? should completely disable access to this mods features for this usergroup if set to yes.
I'm not quite sure what you want to achieve, but if you set everything right in your opinion and things still don't work, first step I would do is to ask DBTech on their forum, explain what you did and what actually happens. Maybe there's a bug and if there is, they would promptly solve it as soon as they knew about it.
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