I've been encountering problems where setting "verbosity" values doesn't result in any output. I finally tracked it down the not-too-recent overhaul of the MCA parameter system. At that time, the mca_component_open function was replaced with a framework_open function, and the "verbose_output" parameter was removed in favor of a default framework_output variable that exists in the framework object itself.
Unfortunately, when the change was made, the original verbose output variables (in many places) were not removed. Thus, everything compiles - but the verbosity parameter for that framework has no effect. I've now found/fixed four frameworks where this occurred - after wasting a ton of time and frustration :-(
So if you are trying to get debug output in a debug build, and setting a verbosity yields no output, check the opal_output_verbose and OPAL_OUTPUT_VERBOSE calls to ensure they are looking at the framework_output channel and not the old one. Quite likely, it wasn't updated.
Meantime, I'm hoping to enlist help in slowly trolling thru all the frameworks and components to correct the situation. Volunteers are appreciated as this is going to take some time to fix.