Reports - Filter by Folder

Thank you for providing more detail.  I now understand. When you said generate I thought you were using it as a verb, but I can see that the button is greyed out.  I'm assuming it's a permissions issue that you can fix by going to Project Settings > Apps > Zephyr Scale > Reports > and changing the settings there.

If that doesn't help then I think you will need to contact SmartBear support here.