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From my experience yuo need to have a User Assignment for Domain Users and Local Users (eg if someone logs on to the PC with a local account), otherwise DLP doesn't do anything.
DLP is user-based. You need to have an user assignment group - othrwise it won't work.
Correct. Just assign a user group of "everyone" to get your tests working, then start to build include/ ecluded user groups to fit your environment