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Hi @GTO455,
To import registry settings, the DEM agent use regedit.exe by default. Depending on UAC settings, regedit.exe can't be used, in which case DEM switches to using reg.exe.
Both executables are controlled by that particular Group Policy setting, but with an important difference: reg.exe is not allowed to run if the setting is enabled, even if the sub-setting allows running silently...
If this was working fine previously, I assume that DEM was previously using regedit.exe, and a recent UAC-related change made it switch to reg.exe.