Thanks for your help. I assumed that bot edits get marked with the lowercase b.

I have enabled the highvolume grant and this fixed the problem with the groups, but even with the bot group and "botflag=True" the edits don't show up with the botflag. For example (https://en.wikipedia.org/w/index.php?title=Yu-Gi-Oh!&diff=prev&oldid=881544738) was performed with the aforementioned grant, but the "b" is not there and it still shows up in watchlists.

To follow up, the login function does not affect this. Without the line, the code still does not mark the edit as a bot edit.

That would make sense.