snowmanfromsingapore
I have the same problem.
To solve it, I followed t1698's instructions, but before that I turned off iCloud contacts sync on my iPhone.
I think there's some issue with iCloud contacts sync.
After following the steps, remember to turn iCloud contacts sync back on.
Credit for the following goes to t1698, I added in step 0:
0. Turn off iCloud contacts sync on your iPhone
1. Open Address Book on Mac
2. Create a new Group - File< New Group
3. Enter a name (I entered: iPhone Contacts)
4. Copy/Paste contacts from the "All Contacts" group to newly created group
4. Launch iTunes and Plug iPhone to mac (do not sync yet)
5. Under the Info Tab, make sure the box is checked next to Sync Address Book Contacts
6. Select All Contacts
7. Check the box (below) to select "Add contacts created outside of groups on this iPhone to:" select
from drop down box the new group you created in Address Book - mine was iPhone Contacts
8. Sync
Now every time you add or delete a contact on either the iPhone or the Address Book and sync, the new update will be reflected on both the iPhone and Address Book.
I tried that, too.
It failed, with the "iPhone Contacts" group simply having the same Contacts that were already in my Address Book. Meanwhile the All Contacts list in my iPhone has 37 contacts which are not in that group on my Mac and are not in the All from My Mac group shown in my iPhone.
