7
Solved the mystery... Everything works fine...
Being used to previous block manager when selecting ordering features I usually selected
All Types for pages, groups and visible settings being at the top of combobox list. Had not noticed that "All Pages" in pages combo was at top and selected it.
When "All Pages" is selected only system blocks appear as they are set to All Pages.
Naturally selecting correct "All Types" and not "All Pages" in combo everything works fine for all modules.