Is "defaultwidgets" a plugin that you added in addition to Elgg's standard plugin? Then this would be my guess for the root of your issue. Normally, only accounts created AFTER setting up default layouts for profile page and dashboard will get the new configuration. This would explain why only new accounts are affected. If your refer to the defaultwidgets plugin delivered with Elgg (also true for other bundled plugins) then I don't think  this is causing the problem.

I would suggest to disable any 3rd party plugins / themes temporarily to check if the problem persists and to narrow down the plugin that might cause the issue by enabling the plugins one at a time.

Maybe a useful plugin for testing:

http://community.elgg.org/pg/plugins/project/559843/developer/brett.profitt/kill-dead-widgets

It will remove the widgets of disabled plugins.

I have figured it out, for some reason, default access of the widgets changed from 'public' to 'private'. Now I just have to figure out how to change the settings for it, so I don't have to manually change it for every new user.

Solved after reading another post of yours, iionly, http://community.elgg.org/pg/forum/topic/727480/widgets-at-profile/#annotation-3277765

Thanks for your help.
Good ELGGing!