This is not a bug, but a useful feature request for LTI.
The issue: Students from a few different Moodle sites have configured a single external tool (standard Moodle activity). The tool is provided by a separate Moodle site via LTI Provider plugin. For example, it is a discussion forum used for Virtual Exchange discussions between the schools.
All the students from all the schools are registered for that Moodle course automatically by the LTI Provider plugin and given access to that forum using the Base URL and Shared Secret.
However, there is no way for an Administrator to assign students into groups through the consumed object.
Instead, an Administrative user has to log in separately on a different computer/browser into the Moodle Provider system and then manually assign the LTI students into respective groups. From there, a Groups-based forum activity can then be used. (We are doing this now and it works fine, but the setup is challenging.)
The request is: When users configure their External Tool activity, is there any means by which students could be "automatically" grouped together? How would we go about deciding the groups? Pass in a local Group code from the local Moodle site? Make a pop-up for students on their first enrollment on the Provider side asking them "Which group do you belong in?" - I'm not sure of the best way to do it, but I'd like the community to weigh in if they have ideas.