No, actually not. I have meanwhile tested it on my iPad too. And like on my iPhone (both 17.1 OS versions) I can choose of Built-In, Workspaces, and the first three of my action groups. Everything above these three action groups is not available, neither by scrolling nor by search.
By the way, in case I didn’t make myself clear: I am really, really happy with the tremendous workflow Drafts allows me to have with this action!
You are using the Grid widget, and selecting one of the items, then searching by name for the action in the box above the list? I have dozens of groups and hundreds of actions installed, and can find any of them without issue if I search.
I did not work. But now it does, on both devices.
Could it have been a syncing/updating issue? Syncing via iCloud has become worse over the last months—and I am not referring to Drafts alone.