Currently the Azure DevOps Services integration supports configuration of the project and the project area. All work items go to the root project iteration level. However, multiple teams may work in a single project and have a different iteration identified as the team backlog; to support teams working at a different cadence. In this use case, the team only needs to see the work backlog for the items in the defined backlog iteration and not for other teams.
The issue of features ending up in the root project in ADO is an issue for us as well. With the primary area of creation being Aha! and as a PO I don't spend my days in ADO, I need to make sure the features/user stories are being pushed to the correct iteration for the team to pick up for refinement and development.
We are also having this issue. We have the parent project, and then the areas for each team beneath that in Azure DevOps (Service). I have a workspace in Aha! for each of the teams and have set up seperate Integrations for each workspace/Azure DevOps area. However when I send epics/features to Azure DevOps, it sets the Azure DevOps area correctly on the work item, but sets the iteration to the parent project which means that the epics/features are not visible at all on the teams backlog or the parent project backlog. It would be great if we could configure the backlog where items sent from Aha! should land, or at least by default the iteration should be set the same as the area so it lands on the area backlog.