Is the with all the USB sticks? or the one you used when "with Offsite access" is the enabled?
if only specific usb, check for .cekey file in the USB and clear it. .cekey file will be visible only when you set to "show hidden files and folders" and uncheck "hide extensions for unknown file type". this .cekey will be recreated on next policy enforcement.
I have some clarification about File & Removable Media Protection, As i am testing with FRP with Share Folder Encryption, it works well with in the network... i have created the policy in epo and applied to the specific folder (Network Share folder) and encrypted successfully and i can open the file whoever having the FRP(product installed) and having access to the file able to view and edit.
but when i copy the same file or sending email to some other machine, where i can able view and edit the file.
it should not be edit right ? while sending the same file to other machine or USB stick.
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