@Ranjithkumar Duraisamy, Thanks for posting in Q&A. From your description, it seems we get error 65000when deploy 'Boot to cloud PC Enhanced' policy to windows 365 Cloud PC.
Please check the event log under Applications and Services Logs > Microsoft > Windows > DeviceManagement-Enterprise-Diagnostic-Provider > Admin to see if any related error exists to get more finding.
Please check the above information and if there's any update, feel free to let us know.
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