@lalajee, Thanks for posting in Q&A. From the information you provided, I know "Has a compliance policy assigned" shows an error. However, there's already a compliance policy applied successfully to the device.
After researching, I find similar issue internally. Please open case to change in the background to help you fix the issue. Here is a link with the steps io open case for your reference:
https://learn.microsoft.com/en-us/mem/get-support
Thanks for your understanding.
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