@Coltin Zielke Thanks for posting in our Q&A. From your description, did you mean that the registered device can't access O365 content because of this conditional access policy? If there is anything misunderstanding, please correct me.
To clarify this issue, we appreciate your help to collect some information:
1.Did this registered device exist in intune portal? And it shows compliant?
2.Did you select "Require device to be marked as compliant" under Grant in this conditional access policy?
If there is anything update, feel free to let us know.
If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment".
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.