Steps to reproduce:
- Create an organization "Parent".
- Create an organization "Sub" selecting the organization "Parent" as its parent organization.
- Create an organization site for organization "Parent"
- Set this configuration in the organization site settings: "Allow Manual Membership Management" = Yes
- Add a public page "home" to the organization site.
- Add Site Members Directory Portlet to that page.
- Add organization Sub to the site.
- Create a user "user1".
- Add user1 to organization "Sub"
User "user1" is not shown in Site Members Directory.
User "user1" is shown in Site Members Directory.