The Users/Roles filtering is available since AAM 5.0 version and is integrated already in free version. This article is written only to raise awareness for this feature. No additional steps are required to enable it as it is working out-of-box when AAM is activated.
The Users/Roles filtering is based on the WordPress User Levels concept where users that are allowed to manage other users or roles can see and manage only those that have the same or lower user level. In the WordPress core user levels is the list of capabilities level_0 through level_10.
Note! There is no limit on how many user levels the website can have. You can create as many levels as needed by adding new capability level_XX (e.g. level_55, level_999 etc).
The Users/Roles filtering is very useful when you give ability for trusted members of your website to manage other users but do not necessarily what them to manage users that are on the higher role hierarchy. For example Team Leaders can manage Employees but should never be able to manage or promote anybody to the Manager role while Managers can manage both Team Leaders and Employees but can not manage Administrators.
Upon AAM activation, all users and roles that have higher user level will be automatically filtered from the All Users page as well as there will be no options to promote users to the role with higher user level.
In case there is a need to restrict the ability for users to manage other users and roles that are on the same user level, you can create a custom capability manage_same_user_level capability and make sure that is it unchecked.
When there are few users that are allowed to manage other users and roles, especially when those users are not administrators, then it is a good idea to reassure that proper access constrains are obeyed. You do not want your privileged users to manage or even delete your super admin account; in some cases you would want to prevent lower level users to see users with higher level.
Advanced Access Manager, out-of-box gives you this flexibility and you do not need even to lift a finger (well maybe only to activate AAM plugin).