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The ability to choose to schedule a meeting on the behalf of others does not appear to be an option. It is set up correctly in the settings, but when scheduling a new meeting, the ability to chose to schedule on the behalf of is no longer possible or a drop down. Is this a known recent issue? Our users started reporting this happening today.. I did check all their settings and tested it as well.
I had one other Zoom Community poster in the last couple of days report that a Scheduling Privilege that he had set up no longer worked for one individual. Just in case you are experiencing the same situation, is it possible for you to remove all Scheduling Privileges from those affected, and re-establish them? That fixed it for this user.
His post is shown here; scroll up for more of the discussion prior to that, which might also be helpful.
If none of this fixes the issue for you and you have not done so already, I'd suggest entering a Support Ticket to see if there is something on the Zoom Staff can look into for you:
Support Ticket: https://support.zoom.us/hc/en-us/requests/new
And in the meantime, you could come back here and I'll work with you to see if there's something I can find that will help fix the situation.