Yes sync is turned on and All contacts selected in the contacts app, still doesn't appear to be syncing, i.e. there are differences between some contacts on my phone and those on contacts.google.com.
As long as you don't have any contacts saved to the local Phone account, go to Settings>Apps, tap Menu>Show System, tap Contact Storage, and Clear Cache/Clear Data. Then open Contacts again and wait a few seconds for your contacts to sync again. Do they show correctly now?