Can't say that for sure, but I just tried to add a moderator to a channel. In the AdminCP I went to Channel Management/Forum Manager/Add Moderator and I had no errors. It is a new vB 5.0.4 installation though, so maybe something went wrong when you updated your previous vB5 installation?
Adding a Moderator
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widgetinstance 262 (Related Topics) skipped due to lack of content & hide_module_if_empty option.
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