Thank you for reaching out to us. Regarding your query related to policies
- How long does ( you notice ) it takes to reflect on your client machine ? How many client machines having this issue ?
- What is version of the office application ?
- Refer to this article https://learn.microsoft.com/en-us/azure/information-protection/refresh-templates#microsoft-365-apps-office-2019-office-2016-and-office-2013-how-to-force-a-refresh-for-templates to refresh template for users.
Let me know if you have any questions.