Could you please try copy some .OrionReport files to that created folder. In my case it is working. After that I can see that new Report limitation category in Manage Account.
Good thought! I hadn't copied a file into the folder yet. I have done that and it works for 10.5 (Prod server running 2008 R2 Server). I now see the subfolder in Manage Accounts listed in the Report Limitation Category dropdown list. However, it is not working in 10.6 (Development server running 2003 Server). The subfolder is not listed in dropdown. I guess it's time to open a support ticket.
Thanks for your help LadaVarga!
CORRECTION! It is now working with 10.6. I realized I made the change to the wrong Dev server which is running NCM 7.2 standalone, not our NPM 10.6 Dev server. Sorry for the confusion! Again, thanks for your help!