@Scott Collier (SHHS), Thanks for posting in Q&A. For the policy you configure, based on my checking, I find it will prevent the underlying file or directory from being created via the known folder API. If the folder exists before the policy is applied, the folder must be manually deleted since the policy only blocks the creation of the folder. So it is not working on our side.
And I don't find other built in policy in Intune can do this.
After researching more, I find it seems we can use registry key to hide it. You can test on one device and if it can work, then I think you can consider do it via PowerShell Script. If the script can work, then we can consider deploy the script via Intune:
https://superuser.com/questions/1470599/hide-3d-objects-from-this-pc
Note: Non-Microsoft link, just for the reference.
Meanwhile, for the GUID of the default windows known folder, here is a link for the reference:
https://learn.microsoft.com/en-us/windows/win32/shell/knownfolderid#constants
Hope the above information can help.
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