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In case there is someone else with this issue later, the group name is assigned after the user name ->
7700-NEXUS1-1(config)# snmp-server user Danny ? <CR> WORD Group name (ignored for notif target user) (Max Size 28) auth Authentication paramete...
This is in response to the Nexus 7000 series bug, right? I tried this solution first even though i was on a 5k series to no avail, but glad it worked for you !
