To reproduce: use the following code snippet and have a look at the attached gif file.
Steps:
1.Populate RadGridView with data and enable Excel-like filtering.
2.Click on a column filter icon and type in the Search textbox so more than two results appear. Then, click OK
2.The grid returns correct result.
3. Click on the previous column filter icon and navigate to Available Filters -> Contains
4. Evaluate the initial pop up dialog. You will notice that the 3rd filter descriptor is not displayed in the form.
5. Then, click OK
6. A message that says: "The composite filter descriptor is not valid".
7. Change the latter condition to "No filter" and click OK
8. The grid returns correct result.

CompositeFilterForm should be improved on a way to display all applied filters,not only two of them.

public Form1()
{
    InitializeComponent();

    DataTable dt = new DataTable();
    dt.Columns.Add("Group", typeof(string));
    dt.Columns.Add("Description", typeof(string));
    for (int i = 0; i < 20; i++)
    {
        dt.Rows.Add(GenerateWord(3), "Description");
    }
    this.radGridView1.DataSource = dt;
    this.radGridView1.AutoSizeColumnsMode = Telerik.WinControls.UI.GridViewAutoSizeColumnsMode.Fill;
    this.radGridView1.EnableFiltering = true;
    this.radGridView1.ShowHeaderCellButtons = true;
    this.radGridView1.ShowFilteringRow = false;
    this.radGridView1.CreateCompositeFilterDialog += radGridView1_CreateCompositeFilterDialog;
}

string word = null;
int cons;
int vow;
//counter
int i = 0;
bool isword = false;
Random rand = new Random();
//set a new string array of consonants
string[] consonant = new string[] { "b", "c", "d", "f", "g", "h", "j", "k", "l", "m", "n", "p",
    "q", "r", "s", "t", "v", "w", "x", "y", "z" };
//set a new string array of vowels
string[] vowel = new string[] { "a", "e", "i", "o", "u" };

string GenerateWord(int length)
{
    if (length < 1) // do not allow words of zero length
        throw new ArgumentException("Length must be greater than 0");

    string word = string.Empty;

    if (rand.Next() % 2 == 0) // randomly choose a vowel or consonant to start the word
        word += consonant[rand.Next(0, 20)];
    else
        word += vowel[rand.Next(0, 4)];

    for (int i = 1; i < length; i += 2) // the counter starts at 1 to account for the initial letter
    { // and increments by two since we append two characters per pass
        string c = consonant[rand.Next(0, 20)];
        string v = vowel[rand.Next(0, 4)];

        if (c == "q") // append qu if the random consonant is a q
            word += "qu";
        else // otherwise just append a random consant and vowel
            word += c + v;
    }

    // the word may be short a letter because of the way the for loop above is constructed
    if (word.Length < length) // we'll just append a random consonant if that's the case
        word += consonant[rand.Next(0, 20)];

    return word;
}

Workaround: By using the CreateCompositeFilterDialog event you can replace the default CompositeFilterForm with your custom one where you can  load all available filter descriptors.