I read the documentation and found:
WHEN YOU CREATE AN APP WITH DIRECT ENTITLEMENT, retail collections are not hidden at this time.
That is too, bad.
With the current release we managed to do it with a custom library, that presented only the folio a user had entitlement for, after login.
I'm guessing that custom libraries are not supported in the new version?
This means that we won't be able to take advantage of the new release until it will provide this functionality .