Can Selective access be applied in case of Dependent filter and list has not been considered in dimension?
Yes, but it depends on the level within the hierarchy the selective access is applied as to how you set up the line items.
In the line item formatting there are following options;
Only apply the selective access check at the level that is restricted.
L3 - selective access is applied
If we apply the selective access check to L1 and L2 line items then it will the drop down will be empty. Only select dependent so that the subsequent selections are filtered to only show the child items of the previous selection.
Apply dependent and selective access to L3 line item to ensure the dependency and the selective access filter out invalid options.