When adding rules to a target, saving, and then editing the target, the rules added are not present, and the count does not reflect as expected. If you try to add a new rule to a target used in a policy, it is not added. Even when creating a new target in the policy, it doesn't add the newly added rule.
The customer can create a target in Manage > Computers, then use in a Managed SW Delivery policy, and the rules are present.
ITMS 8.5 RU2
This fix is included in the lastest cumulative rollup for 8.5 RU2. You can find it here: INFO5407
You can use the target builder from within Activity Center under Manage > Computers. This works fine and you are able to modify existing targets and create new ones using this interface.