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In QGIS 2.12 and down, when one went about manually setting the GRASS provider folder paths, this was the way to do it
In GIS 2.14 there is no Msys folder in the same path (...\apps\msys) or any other folder in the QGIS installation.
So even though QGIS standalone needs to have it set correctly in order for GRASS tools to work, it can't be done.
So how do you make GRASS tools work in QGIS 2.14?
I got the same problem using the Osgeo installer, but I just managed to solve it.
First download this https://sourceforge.net/projects/mingw/?source=typ_redirect
Install it, look for msys-base package and install it.
Set the path to msys in QGIS to "C:\MinGW\msys" or what ever local drive it was installed on and the Grass algorithms should work fine.
So here's the deal: QGIS 2.14 standalone doesn't come with msys installation, but comes with grass 7 folders. QGIS 2.12 standalone comes with msys and grass 6.4 folders, yet no grass 7.
The solution is as simple as copying the folders from one registry to the other.
I worked with both 2.12 and 2.14 to verify that this works, and it does.
In order to have all the grass functionality working in 2.14, I copied the msys (and grass 6.4) from QGIS 2.12 apps folder to the C:\Program Files\QGIS Essen\apps folder, and set the correct path in the providers setting.
I'm on OSX 10.11.3 and I've got the same bug with my 2.12 version downloaded from Kynchaos. I just download this file, unpack it in the msys folder that I created in the path indicated in processing options box. It seems working fine. I've got 160 Algorithms, I don't remember if it is the expected number, can someone confirm me ?
