Privacy settings not working for me

I am trying to align the privacy settings so what is in the backend is the same as the frontend user by default. It seems they are different and even if I tick the "Reset existing privacy items" and save, nothing happens.
See image 1 of the backend of 'who can view photos' and the frontend of a user in image 2.

Also related to privacy, please see image 3 and tell me what that icon symbolizes in the red circle. Because then when i click on it, it's showing me 3 options but none have that "single person icon".

Might i add that if i click on Custom, i cannot ESC or unSelect so i can choose another option, if i clicked on it by mistake i will have to refresh the page and lose all the content of the post i am about to share. i dont know if it's meant to operate like that or if it's a glitch.

Thanks.