I’ve had the same issue with non-admin users losing the ability to select a Gravatar or upload a custom profile picture after 3.2.0beta5.
I appreciate the workaround, Kris. I really do. 
But why should the group level settings for Trust_level_0 have anything to do with the forum level setting, uploaded avatars allowed groups, found at https://[MyDiscourseForumName].com/admin/site_settings/category/files?
For me, I don’t want all my users to be able to see all 5,500 forum users at trust level 0 via the default Discourse group.
Whatever changed in 3.2.0beta5 seems to be unintentional and I’d be grateful to have the old functionality restored where controlling the behavior of uploading profile pictures is entirely based on the uploaded avatars allowed groups site setting.