A family of Microsoft on-premises document management and storage systems.
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Thank you for reaching out to the Microsoft Q&A Forum and sharing your issue.Based on my research, you could try testing this with the Highlighted Content web part to see if audience targeting works there. This can help confirm whether the issue is specific to the News web part on the hub page.
As a workaround for now, you could try reindexing the hub site (Site settings > Search > Reindex site), then wait a few hours and check again in an incognito/private browser session.
If the issue still persists after trying the steps above, it would be best to raise a support ticket with the Microsoft Support team so they can investigate further on the backend.
For further instructions, you can follow this guide: Get support - Microsoft 365 admin | Microsoft Learn
Please understand that as a forum moderator, I don’t have access to backend tools or tenant-level diagnostics. However, I hope the suggestions above can still help point you in the right direction.
Thank you for your understanding.
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