by Garry Edmonds.
Hi Paul,
Just found a job in the tracker about this at Sending Message to Student When Assignment is Graded.
It confirms the option has been removed and there is a request to have it returned. Someone has also noted "....We tested a student account with all messaging options set to "email," ran cron, and the student receives grade feedback, successful assignment posting notification, etc., but when adding a grade only with no feedback, student does not receive anything. This was a nice feature that our faculty and students were accustomed to having, so we hope it returns soon". I havent tested or heard that before though.