There was an update to Power BI that was deployed 08/24/2022 and you can no longer control inclusion in Apps from the main screen.
The column is still there so you can see if a report is included in the app, but you can't change it there anymore. The new steps are this:
Click on Update App, to get into the Update App configuration screen.
Click on step 2. Content and then Add content. Add the new report to the Content list below.
Click on step 3. Audience and make sure the newly added report is not hidden (it seems to be marked as hidden by default).
Publish the app. The new report will now appear in the app.