Thanks for the bug report. I am able to confirm this.
Test case with adding myself to the kvm group:
$ sudo adduser jacob kvm
$ groups
jacob adm dialout cdrom floppy audio dip video plugdev scanner lpadmin admin
netdev powerdev sambashare
$ groups jacob
jacob adm dialout cdrom floppy audio dip video plugdev scanner lpadmin admin
netdev powerdev sambashare kvm
Logging out or restarting is a workaround. Certainly a weird bug.
** Changed in: coreutils (Ubuntu)
Status: New => Confirmed
** Summary changed:
- Strange behavior after adding a user to a certain group
+ Strange behavior after adding a user to a certain group, groups and id don't
show updates
--
Strange behavior after adding a user to a certain group, groups and id don't
show updates
https://bugs.launchpad.net/bugs/178059
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