Do not show Modern UI applications in the all programs or search lists
I will have to fire up the test domain to be sure (and will) but a common error that people make is that they think that 'disabling' that (any) policy will have the effect they want, when in reality, you need to enable it and set a null / 0 value. Again, I'll look at what the options are but you may want to check that and then GPUpdate.
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Sean Drohan
Stardock Customer Service Manager