Note: <replication-filter:location-filter /> simply returns an object that implemements com.tangosol.util.Filter.
FilteringPublishingTransformerScheme has a mandatory property filter:
public void setFilter(Filter filter)
This means that Configurator looks for an element sync:filter, however according to the specification on the incubator site (http://coherence.oracle.com/display/INCUBATOR/sync-filtering-transformer-scheme+(3.0.0)), I think it should actually be looking for an entry-operation-filter.
Looking at the spec, it suggests that you should be able to use <instance:class> however that also fails: