OK so "policy sets"... should really be called "policy groups" but I guess that is far too close to "Group Policy's" for Microsoft's liking and they are definitely not that, so don't get too excited! (But if the thought of GPO's did get you going then check out the new settings catalog)
They are just a way to containerize app deployments, configuration & compliance policy's and a few others like autopilot and enrollment profiles so you can assign them more easily.
Although it does look good at first it is very much in preview. The fact that they do not support Win32 apps currently means I will only really be testing them for devices like iOS and Android.
I will say that Microsoft has been good and provided solid info on this and the other limitations here
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