Search marked as favorite did not show up after adding it. Another user tried from his computer and it allowed him to add some searches but not all that were selected to be favorites. It seems like there is some criteria in the saved search that prohibits adding them to the list.
Some of the searches added as favorites were not published to the role user was in. Once user added the role to the saved search, then added as a favorite, saved search was visible in the Favorites drop down. In the Business Object, select the Saved Searches Edit the Save Search you selected as Favorite Ensure that your role is in the "Publish Action To"Save This saved search should now display in the Favorites drop down