Hi Jon,
Even though you have set the policy it still requires the people to try and authenticate to the accounts. (This is also how Multi-Factor and Modern Authentication works). The Conditional Access Policy only kicks in after the first layer of authentication is completed.
Unfortuantely, your logs will still continue to fill up and this is completely normal (indicating that the people have tried to authenticate against the account and failed due to being blocked).
Learn about Conditional Access and Intune
https://learn.microsoft.com/en-us/mem/intune/protect/conditional-access
If this is helpful please accept answer.