Hi,
The password policy from the default domain policy is enforced by the domain , it means that the password can't be blocked.
The password policy is a computer policy, all the PCs in the domain will apply the policy. This means that all the users logon to the PCs within the domain will apply the password policy.
If you deploy the fine-grained password policy for the specific users and groups, the fgpp will be executed .But fine-grained password policy can't be only deployed to users and global groups.
For more information you can refer to :
https://learn.microsoft.com/en-us/windows/security/threat-protection/security-policy-settings/account-policies
https://learn.microsoft.com/en-us/windows/security/threat-protection/security-policy-settings/password-policy
Best Regards,