I completely understand that, Alert Fatigue is a real problem.
I think it’s important to run a frequent alert audit, make sure that anything that can wake up your teams is actually something they need to be woken up for.
Regardless of that - In terms of the right incident preference for you - that depends on your needs,
By Policy =>
You’ll get 1 Incident for any violation within that policy for any condition and any target. Everything rolls up into that incident until such time that it is closed - paving the way for a new one.
By Condition =>
You’ll get a new incident for the first violation in any condition within the policy. If that condition throws a number of violations while that first incident is still open, those violations will roll up into that incident.
By Condition and Entity =>
You’ll get a new incident for the first violation for any target in the conditions within the policy. If for example you have conditions targeting an APM app and that app has 5 violations in in short succession, you’ll still only get 1 incident for that so long as that first incident is still open, since it’s the same condition, and same target.
There is no way to get a incident per target, regardless of condition.
I think for you it may be best to go
By Condition - You’ll get verbose notifications, but not too verbose.