Will have to clear things up a bit since we're talking about several modes by now and I also went to talk with our GM guys.
1. STORY: Shroud works if in Leveldata, "Set hide shroud" is False
2. GM: No shroud. At all. Not for GM, not for players.
3. Editor: Again. No shroud at all.
What? That's crazy. No shroud in GM mode? Tell me this is coming in a patch, and soon!
Not true. Some of the player made levels have FOW.
Yes... there seems to be people on the steam forums who have managed it.
This really need to be addressed asap. That and the myriad crashes while in GM mode.