I believe this issue was marked as a duplicate incorrectly. The issue that this is marked duplicate of is unrelated to the bug raised here.
MCL-17524 is regarding the filters on the Installations tab not being applied to the Play tab - a feature that I don't think was existent in any previous versions of the Minecraft launcher.
This issue is regarding the filters on the Installations tab not being applied when creating a new Installation - a feature that was present in the previous launcher (now listed as the "Windows 7/8 Launcher") but is not present in the Windows 10 / 11 Launcher.
Whether or not it's working as intended, I can't say, but again - I believe this is not a duplicate.
Can also confirm - game is not launching. 😐