Did you give them permission in the User Management ->system Tree Access ?
Also check your systems:
Also, think you might be getting confused on repository management and system management. The user would need full access to that system/host that is acting as the repository- which should be in the Agent manamgent which should be controlled via the Policy assignment Rule: permissions.
OR- just copy the "group admin" permission sets and then change the "system tree" permissions to the hosts that user needs access to in the system tree.
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