The Users/Roles filtering is available since AAM 5.0 version.
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.