Family link aka sibling link
The field that PowerSchool uses to find kids it thinks are related, is the "home_phone" field. So, work with SMALL selections of students at a time, because anyone who has a blank home_phone or some quasi-blank value like "000-000-0000" is going to appear to be related. (You CAN undo a bad link if that happens, so it's not the end of the world, just annoying.)
1. Get your selection, like maybe all the A's, and go to Group Functions -> Mass Create Family Links:
2. UNcheck the box for Family ID, and make sure that the box for Student Phone is CHECKED, and submit:
3. If you want to check a kid's siblings, go to his or her "Family" page. If there's an unrelated student listed, use the "remove from family" checkbox to unlink them:
4. To get an overall view/sanity check, then go to System Reports -> Custom Reports -> Misc -> Sibling List and run it for the students in your selection (in this example, the A's.)
The results will look something like this: