The Add to Policies section allows you to include your newly registered instance to any existing custom policies. This section displays only when you have created policies whose server membership has been explicitly defined. For example, if you created a policy that included only your test SQL Server 2012 instance (rather than, for example, all SQL Server 2012 instances), this window will list that policy and allow you to include the newly registered instance.

In this section you can see two lists:

• The User-defined Policy Membership - where you can select which policies should include the SQL Server instance you are registering.
• The Automatic Policy Membership - where you can view those policies where your SQL Server instance will be added automatically. 

Click Next to go to the Take Snapshot section.