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I believe that we are using Microsoft 365 Defender. But the question applies broadly to all enterprise versions of Defender.

What I mean by E5 policy is any policy covered under the E5 umbrellas. But lets just say we're taking about an antivirus policy for this discussion's sake.

A better way to put it might be. When a device is added to a group that is assigned an E5 antivirus (or other security) policy, is an upgraded/expanded version of Defender pushed down to the device? Or is it just the newly assigned policy that gets pushed?

From what I've read so far it looks like just the policy is sent. But I haven't found anywhere that says one way or the other explicitly.

Oh right. I always forget about the Global Reader role. Thanks for reminding me!

Yup, that was it. Thank you for humoring an idiot.

Well, none of the affected machines are showing that KB as installed. But when I apply the suggested registry edit the issues appears to be resolved. So that you very much for the help! :)