Ok, so I'm more confused. Two systems in my test group have the same policies etc. One has VSE in taskbar and both VSE and HIPS are installed. The other has the Agent in taskbar and only HIPS installed.
can u share how u configured and applied the policies
I've basically used the My Defaults with a tweak here and there. Did find out that uninstalling and pushing VSE/HIPS to the clients corrected part of it. The other part I needed to allow McAfee to not block itself, under "On-Access Default Processes Policies" added "C:\PROGRAM FILES (X86)\MCAFEE\VIRUSSCAN ENTERPRISE\X64\*". So far things are working.