Hello @MoisesEscobar-4835
Thank you for posting your query on Microsoft Q&A.
Policy 1: AllUsers-OffNetwork-AllApps-ExcludeOffice365-DesktopMobile-12Hrs-Allow
Policy 2: *AllUsers-OffNetwork-IncludeOfficeO365-DesktopMobile-Allow
This is to be expected given that you have two rules in place that contradict one another. One policy states that the Office 365 app is included, while the other excludes it. As a result, the policy that includes Office 365 will take precedence. There was no difference when Office 365 was excluded. Therefore, you can utilize a single policy with a few adjustments to make it work.
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Best regards,
Sakshi Devkante