How Office 365 / Entra ID Alert Profile Filters Work
Some Office 365 / Entra ID alert profiles allow you to configure filters to make event collection more targeted. Currently, these filters let you specify specific users as targets, so events are collected only for those users.

User filters – You can select up to 20 users from your Entra ID. The specified users will be used as target conditions for collecting events.

Group filters – You can select up to 10 groups from your Entra ID. Direct user members and user members of all nested groups within these groups will be used as target conditions for collecting events.

If both user and group filters are configured, they are applied using an OR condition.