Update
I suspected it may have been a bug, on an interesting note I was doing testing on the August and September monthly patches for Win 10.
For whatever reason, installing the following patches allowed the GPO to take effect correctly.
Very strange, considering RSOP showed the GPO's were in effect prior to the patch installing.
Perhaps this was a bug corrected that I don't see in any patch notes.
If anyone is interested in the specific KB's, should it happen to you. (Yes, KB5005033 is superseded by KB5005565 so you should only need the three)
2021-08 Cumulative Update for .NET Framework 3.5 and 4.8 for Windows 10 Version 21H1 for x64 (KB5004331)
2021-08 Cumulative Update for Windows 10 Version 21H1 for x64-based Systems (KB5005033)
2021-08 Servicing Stack Update for Windows 10 Version 21H1 for x64-based Systems (KB5005260)
2021-09 Cumulative Update for Windows 10 Version 21H1 for x64-based Systems (KB5005565)
We delayed these updates due to the PrintNightmare problem that was introduced by the "Fix" in these monthly cumulatives.