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Tab Settings is not an option for some Permission Sets

Knowledge Article Number 000204537
Description The Tab Settings section is missing from the Object settings for some Permission Sets. Some have them while others do not. 
Resolution The Permission Sets that are missing the Tab Settings section do not have a License Type assigned. When you first create a Permission Set, you have the option to assign it a License Type. When you do so, you will see the Tab Settings section is available under Object Settings | Object Name. 

If you do not assign a License Type, then this option is removed. This is because some License Types, such as Chatter Free, have much less visibility to objects than say a Salesforce User. There would be an issue if you assigned that Permission Set to a Chatter Free User and had Tab Settings On for Objects they shouldn't see. The License Type on the Permission Set determines what objects are visible to modify permissions to. 

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