Custom Filters can not be selected in the on the Policy > Apply to > Quick Apply Menu in ITMS 7.6. Affected policies include Software Update policies and Managed Software Delivery policies.
The old applicable method was as follows in previous versions allowing target for Group, Filter or Targets to apply:
The new applicable method in v7.6 is as follows and excludes targeting anything other than the Default Targets:
The product is working as designed, for the 'Apply to' > 'Quick Apply' menu in ITMS 7.6 no longer allows for selecting of Group or Filter and only displays applicable Targets, for there were anomalies found in older versions which allowed underpriviledged users the ability to target entire environments with a Policy via Filters; however, the Targets are scoped to allow users to target only what they have rights to.
The Filter may still be targeted by working through the following on the Policy:
However the best practices method to target a custom filter in 7.6 is to create a target from the Custom Filter.