"Student Visibility" settings only apply to the visibility of the applied rubric after you are all done grading and have released the graded assignment back to students.
They can always see all of their work, but you can show all rubric items, whether applied or not, hide all rubric items, or you can only show them rubric items that were actually applied to their work as part of grading.
Best practice is to show all rubric items so that students see all of the elements upon which their score was evaluated, even if some of them were not applied.
The rubric item visibility only applies after grading is completed, final grades have been calculated and the grades have been released ("published").