I'm not entirely sure if it's a bug in the AMM or something else.
When creating a new module the viewlevel field shows the first item of the list, not the public level (id #1). The problem does not occur by the native module manager. The problem still existed for a longer time. We have an installation of AMM 8.0.5.
I cannot reproduce the issue.
I changed the ordering of the access levels on my setup.
And on both the core module manager and Advanced Module Manager, the Public is selected by default when creating a new module.
Also the XML syntax for that access level select field is exactly the same for the core and AMM.
Can you reproduce this on an online environment to which I can get access?
(Using the latest version of Advanced Module Manager, of course)