Just checked with MMA 1.0.7.0294 and the problems seems to be gone at the moment. (Possible something was fixed with an update)

MMA likely can only display lyrics if you synced MMW to MMA (this can be USB or wifi) as this allows MMW to update the MMA database directly. Uninstalling MMA would remove the database and thus a clean sync would be required.

I'm having the same issue. I synced via USB once and no joy so deleted all songs and app, booted and reinstalled and resynced. MMW shows all lyrics are present and verified the MP3 files actually have the lyrics frame using Magnus Brading's MP3 Tag Studio. When I first installed MMA it properly displayed the lyrics while playing a song. Now it doesn't regardless of what I have tried. When I flip over to the lyrics page it wants to go out to the network to find them. Doesn't seem to be looking for them locally.

-Pat

That reply was mine, just didn't notice I wasn't logged in.

I am 99% I synced from MMW to MMA over USB (otherwise I did it by copying through Windows Explorer, drag'n'drop). I've tried the built in music player for Android and that does show the embedded lyrics, then returned to MMA, played the same song and no lyrics (only a search that ended up empty, but that isn't the issue here).

How did you sync to your device? MMW to MMA sync (I do wifi) shows the embedded lyrics on MMA.

I'm listening to songs that have embedded lyrics, but when playing them, I can't see the embedded lyrics, but mma starts searching for them.
Lyrics have been embedded using mmw.
I'm currently using mma 1.0.6.0283 on a Galaxy tab 3 with Android 4.2.2
I've sent a debug log: DCKMAIWCU4 (didn't know if it was necessary, did it in case it was needed)