Can the extension restrict users to manage the catalog by store view/website in magento?

Yes, sure. You can choose to which store views or websites an admin user will have an access. This can be configured in System > Permissions > Roles > Advanced: Scope:

Magento Advanced permissions extension by Amasty

Block a user once the number of login attempts is exceeded by using our Magento Admin Log extension.

See more details on Advanced Permissions page

User Guide

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