I have the same settings as you except for the compression...mine is enabled. Wonder if that has anything to do with it.
I just completed my upgrade to .160 and see the same issue I had after the .138 upgrade. When you first go to messenger, you see your contact categories and they might say something like 0/4 or 1/5. So they are hidden in background somewhere. If one of them pings you, they resurface. It was only after a few battery pulls when I started getting the message about my PIN changing and I needed to notify my contacts or they would be deleted.
So far, I'm back to them being hidden.