When an authentication policy contains the same authentication factors defined across two distinct policy levels (where, skipFactorLevelForMatchingAmr is set to false), and a user authenticates using any factor at the first level (like PWD), the system unexpectedly skips all subsequent authentication obligations.
VIP Authentication Hub
Release : 3.4.3
This issue is identified as a regression issue in the product and fixed in release 3.4.4 already available for upgrade.
Release notes for the 3.4.4 version can be found here.