If BadCSSChars is defined as such:
BadCSSChars = <,>
Is this normal that URL-encoded chars (%3C and %3E) are blocked by SiteMinder WebAgent?
Web Agent Version: 12.52.x
Yes, this is normal.
Encoded characters are also blocked, even if the encoded value is not specifically defined in the BadCSSChars list. So when defining > in BadCSSChars, the character > and the corresponding encoded character %3E will be blocked by SiteMinder WebAgent.