My wife and I (both lvl 14 non veteran rank) sought out a group to do the Undaunted Grotto dungeon for our new characters. We partied up with two other players who were also non veteran rank; levels 14 and 18. We get in and a message pops up saying the dungeon was scaled to the party leader which happened to be me. All the enemies were VR16 and our gear was buffed, albeit poorly, to meeting the estimated scale of our enemies. We fought hard and made it to the final boss but were no match.
After about 2 hours we gave up, well our healer did and we were nothing without him, he was damn good. I checked the group setting multiple times and it was not set to seek a VR dungeon, in fact I wasn't allowed to. I verified the players multiple times to make sure they weren't VR and I certainly wasn't. I tried a few more groups and more of the same. Logged out and back in, no different. So I just assumed this must be some new way the dungeons worked.
After a couple of quests I leveled so more an got some good gear drops. I decided to try again. This time though as I was walking past the wayshrine near Grotto I was asked to join a group and I did, so I didn't use the finder tool. To my surprise the dungeon was scaled far more favorably. All enemies were ordinary rank 16. We blazed through the dungeon in 15 minutes tops.
So is there something I'm missing about dungeon scaling or was this just another bug?