SYMPTOM:
"Apply Selection as Filter" selector option in document does not properly interact dynamically between property list pane view and selector properties option. This issue is illustrated in the screenshot below.

Notice how the 'Apply selections as a filter' checkbox is selected but it is not reflected in the Property List Pane. The option that is reflected on the document is the one that is selected in the Properties window.
CAUSE:
This is a known issue in Strategy Developer 9.4.x.
ACTION:
Contact Strategy Technical Support for an update on this issue.