Albert Barnes Commentary Psalms 78:67

"Moreover he refused the tent of Joseph, And chose not the tribe of Ephraim," — Psalms 78:67 (ASV)

Moreover, he refused the tabernacle of Joseph – as a place where his worship should be celebrated. This is the completion of the statement in Psalms 78:60. The design is to show that there had been a transfer of the preeminence from the tribe of Ephraim to the tribe of Judah, and from Shiloh to Zion. Joseph is mentioned here as the father of Ephraim, from whom one of the tribes (one of the most influential and numerous) was named.

Jacob had twelve sons, from whom the twelve tribes generally took their name. However, since the tribe of Levi was devoted to priestly work and was not counted as one of the twelve, the number was made up by giving the descendants of Joseph’s two sons—Ephraim and Manasseh (Genesis 48:5)—a place among the tribes. For this reason, the name Joseph does not appear as one of the twelve tribes. Yet Joseph is mentioned here as the ancestor of one of them—that of Ephraim—from whom the priority and supremacy were withdrawn in favor of the tribe of Judah.

And chose not the tribe of Ephraim – to be the tribe within whose territory the tabernacle should be permanently set up, or within whose territory the place of public worship was finally to be established.