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I've contacted McAfee support and have resolved this issue.
Basically, u need to use your grant number to download the latest extensions (also for reports). These can be found at the tab 'patches' of the link where u download the mcafee client. Currently called VSE85HF391404.zip (for the policies) and VSE85HF450332.zip (for the reports)
Then back to the ePO console:
Configuration -> Extensions -> Install Extension
Install the extensions and voila the policies are updated to the latest.