Hosts appear in Setup but not monitoring

I’m missing things here.

What service and host rules did you create? I assume you placed the hosts the user should see in a folder? what settings did you use?

You dont need rules for this, this is wrong.

Create a folder for “group a” where you set the contact group that group a should use, the same for folder b

Set the permissions accordingly.

You only need rules when you want to override things, mostly on a service level (that is overkill for most implementation)