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With Euclidean source convention $+\int d^{d}x{J}_a{\varphi }_a$, the generating functional isHere $J_a(x)$ is a nondynamical source. Its functional derivatives insert fields:This is why $Z$ “generates” correlation functions.

With the notation of the question, $W[J]=-\log Z[J]$ is the Euclidean connected generating functional; it is distinct from a Wilsonian effective action. Define the classical fieldThe quantum effective action is the Legendre transformwhere $J$ is eliminated in favor of $\Phi$. Its first derivative isso at zero source the quantum expectation value is a stationary point of $\Gamma$. Moreover,where $G_{ab}=⟨{\varphi }_a{\varphi }_b{⟩}_{J,\mathrm{conn}}$ is the exact connected correlation function. Thus the second derivative of $\Gamma$ is the inverse exact propagator.

Perturbatively, $Z[J]$ sums all Feynman diagrams, including disconnected ones. The exponential formula for combinatorial structures says that its logarithm selects connected Feynman diagrams, so $W$ sums connected diagrams with the sign dictated by the convention above. The Legendre transform removes diagrams that disconnect when one internal line is cut; consequently $\Gamma$ sums one-particle-irreducible Feynman diagrams. Equivalently, every connected diagram is a tree assembled from one-particle-irreducible vertices and full propagators, and the Legendre transform inverts that tree construction.

Now let $J_a^{\prime }=J_b{U}_{ba}$. ThenChanging variables to ${\varphi }_b^{\prime }=U_{ba}{\varphi }_a$ and using invariance of both the action and functional measure gives $Z[J^{\prime }]=Z[J]$, hence $W[J^{\prime }]=W[J]$. In the Legendre transform, the pairing obeysChanging the source variable and using the invariance of $W$ therefore givesThe symmetry of the classical action and measure is inherited by the full quantum effective action when it has no quantum anomaly.

Through order ${\lambda }^2$, the quartic one-particle-irreducible Feynman diagrams are the tree-level four-point vertex, the local ${\delta }_{\lambda }$ counterterm vertex, and three one-loop bubble diagrams. The bubbles have two quartic vertices and differ by whether the momentum through the loop is the $s$, $t$, or $u$ Mandelstam variables; each has symmetry factor $1/2$. External-leg self-energies are not part of the 1PI four-point vertex, and ${\delta }_Z$ begins beyond the required order in this theory.