Yes, "Enabling broadcast-filter all broadcast-filter arp" will also drop any multcast which includes your mdns traffic.
Find the screen shot for the same.
You could still enable the "convert broadcast arp request to unicast " converting arp request to unicast.

May i know the size of your VLAN? What is the uplink configuration on the controller?
You can write the acl to drop the other broadcast traffic like SSDP, netbios allowing mdns and any other traffic which we need.
Thanks!