Friends Notifications Settings Broken?

Bug Report
Battle net desktop app.
It appears to have this great feature to not be pestered with notifications from ALL your friends. Great Idea! I admin and there fore have a large number of friends but don't need to hear about every single on that comes on line etc. I just want to know about my favourite few. Here is a pic of the feature window in settings but i get notified of everyone and would like to see this feature working!

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