When 3.5 first installed, all my favorites carried over. However due to crashing issues I uninstalled it, deleted the Waze folder and reinstalled. The new install made no attempt to restore my favorites from the server. Rebooted, uninstalled, rebooted, reinstalled, rebooted, still no attempt by 3.5 to restore my favorites from the server.
Logging in with Waze account (never used Facebook).