Venues opt groups

I’m developing a plugin that interacts with the venues select2 select menu. In one of my environments I’m able to create a venue and the list will then have opt groups for “my venues” and “available venues”. However, when I do this in my dev environment (which was created from the prod environment) I cannot get the opt groups to display. It adds the created venue but no opt groups. I have tried creating the venues using different user ids but same.

How can I make my venues dropdown in dev have opt groups for “my venues” and “available venues” like it is in prod?