@Roshan M (iCORE-CRS), Thanks for posting in Q&A.
From your description, I know you failed updating AppLocker policy in Intune portal.
To clarify this issue, please check the following.
1.Please check whether the xml file' format is correct.
2.You can try to delete the custom AppLocker policy and re-create a new not to see if the issue can be fixed.
https://www.lableoel.com/post/intune-applocker-policies-xml-manage
Non-official, just for reference.
Here is a link with the same issue you can refer.
Please try above information, if there is any update, feel free to let us know.
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