Hello there,
Have you tried setting this policy on the local GPO: Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options\Audit: Force audit policy subcategory settings to override audit policy category settings?
In a domain-based environment this setting is required to tell Windows to ignore the "legacy" category-based audit settings and instead respect the "Advanced Audit Policy" settings that use subcategories.
The below thread discusses the same issue and you can try out some troubleshooting steps from this and see if that helps you to sort the Issue.
Hope this resolves your Query !!
--If the reply is helpful, please Upvote and Accept it as an answer--