Application Context filters apply security policies to applications in a user context.
Interactive Users Filters
Application Context filters are mostly applied to interactive users as a conditional filter for an application control policy.
We recommend you use this filter when you use a broad scoping application control policy, such as any file with a system file owner for a Whitelist, so that you don't catch applications launched by system services or accounts.
LocalSystem and Service Application Filters
The Application Context filter is rarely used in environments. You would use it to target or limit application control policies to applications launched by only the Local System or Services.
Service Application Filters
This is the same as for the LocalSystem and Service Application filters, except it targets only Services that get executed.