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This is usually, but not always, caused by the ePO server sending a policy which the agent on the client machine cannot understand - for example if it has a corrupt string, or illegal characters in it.
Please open a case with Support - diagnosing this kind of problem will require decryption of the policy files from the client machine, and Support have access to the tools to do this.
I have no experience with this but given what Joe said, I would probably go in and try making a small edit to each of the policies and then changing them right back and see if that fixes it... I feel like the server would have to re-save the policies which might wipe out any corruption.
Anyway, this is all speculation but it might be something to try quickly before getting on a call with support.
I have been testing this all morning - to get this to work and not have the policy update error all I neede to do was duplicate the original policy causing the issue, renamed it and appy the policy and this policy merged successfully. THe name only differs by a few letters. Must be in the way the policy is duplicated and saved
yeah, doing that will create new entries in the db thereby getting rid of any corruptions in the db. Good job man.