This article explains the available options under "Application Visibility" and their respective use.
On MIST UI under "Application Visibility", we see three options:
As mentioned on the MIST UI, "App Track license is used to collect data for monitoring applications and service levels"
Please note that if you have the following configuration, it is MANDATORY to choose this as "Device HAS APP Track license".set security policies from-zone Trust to-zone Untrust policy Allow match dynamic-application anyIf anything else is chosen, the security policy will NOT trigger, as SRX will fail to identify any application because the APPID database is not installed. This can lead to packet drops on SRX.