See screenshot peer_and_group_assignment_settings.png, which is the way things are configured now. Peer assessment is in it's own section. The group setting is under Access, but it really is not about Access, it is about group submission.
The Teaching and Learning group reviewed and recommends removing the Peer Assessment section and instead add a section called "Individual or Group Work" with two options, Individual submissions and Group submissions. If Individual submissions is selected then display an option for Peer Assessment, since it seems that Peer Assessment is not available when using the Group submissions feature, this seems like it makes that clearer.
Individual or Group Work
[x] Peer Assessment
( )Group submissions