I set up a smart group within a group with one search string and checked on “Highlight Occurrences”.
The search string is something like this
(( word1 near (word2 word3*)) OR (word1 near word4*) ) NOT word5*
When I opened the smart group, no occurrence was highlighted in all of the items in the filtered results.
To troubleshoot, I tried turn-off/on the check box, close/re-open the database, close/re-open 3.0, none of the methods worked.
Additional info
I then entered the same search string into the search field of the main window’s tool bar directly, and observed that all occurrences were highlighted in the list of search results.
But there is a subtle difference: When I use direct entry, the search field within the inspector sidebar for each item in the searched results is showing the same search string as my direct entry. When I set up the smart group, the search string is not in the search field of the inspector bar for all items within the smart group.