VMware Aria Operations for Applications, formerly known as Tanzu Observability, includes the capabilities to create alerts, set service level objectives, and create charts and dashboards. These functionalities are essential for monitoring and managing the performance and reliability of applications. Creating alerts helps in proactive monitoring, setting service level objectives ensures that the application performance meets defined standards, and creating charts and dashboards provides visual insights into the application's metrics. Setting application container security policy and creating Kubernetes clusters are not primary capabilities of this tool.