Steps to reproduce:
create a work group with user Mary as the group manager
create a patient record and set the group to be the owner of the record
login as Mary
open the permissions dialog on that record
PROBLEM: when you are logged as Mary (group manager) you should be able to change the owner of the record, however that option isn't available
Observed in the family record form as well.
This problem does not exist in version 1.3.7.
In 1.4RC1 I was able to modify permissions via REST API.