After a uninstall and reinstall of a cloud client that was part of a hybrid install the client wont update the system policy only.
The uninstall of the hybrid client left the hwid and the group location of the hybrid sepm on the client. The reinstall registers the client using the old information. This causes only the system policy not to be updated.
Release : 14.3
Uninstall the client confirming the registry does not have any sepm produced values and the folders on the drive containing the HWID are deleted if left behind.