what happens when you try to use safari as a local user or a network user with an empty home folder? it sounds like the permissions are messed up on the ~/Library folder and that safari can’t write its preference file.
when moving the users’ home folders, try using “sudo cp -Rp …” to preserve the file attributes. if that doesn’t work try creating an archive (with tar, bzip2 or whatever) of the home folder and then decompressing that where ever you want to move it to.
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