You can see it in your screenshot - it's got "order by rank" in it already.
That means you have ranking enabled, and don't need to do anything.
So, the next question is "where are you looking when you say ' display Sub-task with associated parent task hierarchy,' ?"
Your screenshot is of the quick filter configuration. That has nothing to do with ranking, it's about hiding and showing a sub-set of the data on your board.
Your first screenshot was where you enable ranking, and it was showing as already done.
So, again, where are you trying to "display sub-task with parent task"?
I'm sorry, but "in issues for each project" tells us nothing about where you want to see this.
I'm not sure what "format" you are looking for, but a dashboard filter can easily include and display sub-tasks, and that has nothing to do with ranking
Ok, that view is the "issue navigator" which is designed to show you the results of a filter.
The simple list on the left really is very simple and just lists the results, ordered by whatever you have selected for ordering. It's not really aware of parent/subtask stuff, it just lists your issues in the order chosen.
I often write or install a simple "parent" scripted field which effectively adds "parent" to the sort order, which then at least groups them together in here, but this is not the place Atlassian generally intend parent/subtasks to be shown. Sorting the list by rank might work quite well here though, because sub-tasks belong to their parents and hence have the same rank, so they should be grouped if you select to order by rank here.
As sub-tasks belong to parents, the general ida is that you'd work with sub-tasks within them - the best display of sub-tasks for most purposes is within the parent issues. They are still issues though, so you can still report on and use them everywhere else.
The script I used in the past (and the add-on I wrote, which is essentially the same code) relies on Script Runner. It doesn't do a lot more than being a scripted field with an output based on the pseudo-code:
if (issue is a subtask type)
$issue.getParentIssue.getKey() + $issue.getParentIssue.getSummary()
$issue.getKey() + $issue.getSummary()
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