I think I bumped into a bug in ArcGIS Pro 3.0.2 using Network Analyst with Street Map Premium.
Everytime I use Location Allocation Algorithm, cutoff value is actually being used as the maximum number of facilities to find.
Did anyone experienced this?
I was about to reply with the same!
I solved without the group name and got 50 facilities for the 2 KM cutoff.
Glad you can move forward.