Edge 116 Beta: Policies are blocked if MDM-Managed & Userprofile-Sync personal Account

Robert_Holcombe yes, I think your troubles are related to my Issue described above.

Last night (August 21st to 22nd) new Edge v116.0.1938.54 Stable got rolled out via EdgeUpdate.  Yesterday I wrote (see post above), that STABLE v115 is not affected so far. Today with the rollout of v116 now all machines using Stable are affected.

You are listing some affected policies: InternetExplorerIntegrationLevel, InternetExplorerIntegrationSiteList and EnterpriseModeSiteListManagerAllowed - but those three policies are NOT so called "sensitive Policies" 

Yesterday when I was writing my initial post above I thought only the "sensitive Policies" are affected.

"Sensitive Policies" are Policies like e.g. those:

• DefaultSearchProviderEnabled
• PreventSmartScreenPromptOverride
• SmartScreenAllowListDomains
• HomepageIsNewTabPage
• HomepageLocation
• NewTabPageLocation
• RestoreOnStartup
• RestoreOnStartupURLs
• AutoOpenFileTypes
• CustomHelpLink

All "Sensitive Policies" are marked in the Microsoft Edge Policy Documentation as "This policy is available only on Windows instances that are joined to a Microsoft Active Directory domain, Windows 10 Pro, or Enterprise instances enrolled for device management."

BUT: You are right, not only "Sensitive Policies" are affected by this behaviour but also most of the other policies are affected and show up as ignored.

It seems Kelly_Y has already pointed out the right core issue, it is Edge for Business added with v116. But according to the documentation and FAQ for Edge for Business it should not be activated by default without having a work-profile.

Here we find the list of Policies which are filtered out as ignored when "Edge for Business" is used with an Enterprise personal browser (MSA profile) ... and "Signing in" with a personal Microsoft Account to get Favorites synced seem to kick in this filtered mode regardless of Edge for Business is used or not. In my case it is NOT used, not activated. No visual  signs like the "Icon updated with the briefcase" shows up. There is no "one-time banner will appear at the top of the browser after first launching Edge for Business informing the user of the change with a link to learn more". Nothing of this described experiences which would give me an information that "Edge for Business" is activated are shown. No Idea why the "Edge for Business" behaviour for a Browser only having a single Profile (which is a "Personal Profile") kicks in. There is NO Work Profile configured / available, so no Idea why Edge thinks it should filter the policies out from the single profile available. We are not using Entra ID (which I read would enable Edge for Business by default).

So for me stripping out almost all policies we set because user is "Signed in" with a personal Microsoft Account is a huge issue. If this is not a bug but a wanted behaviour by Microsoft they really immediately have to add a policy to configure this / turn this off. I understand the concept of "Edge for Business" to have a Work-Profile having assigned the policies and a Personal-Profile having stripped off most of the Policies. But in my case there is no Work-Profile and Edge for Business is not used. So with Edge v116 all Users can just disable almost all Policies by just signing in with a Microsoft Account to sync their Favorites. Thats crazy.

Asking Kelly_Y , mkruger for help and advice.