@reptar Maybe a dumb comment. But if you click new do you get a permission violation? Maybe the setting is correct but the browser cache is the problem.

Getting a new error after filling out the restrict values under permissions on the new record type:

You have defined roles under the permissions subtab but have not chosen to use the permission list for access to the custom record.  Are you sure you want to do this?

@reptar that usually happens when the header setting is 'No User Permissions' or something instead of use permission list iirc?