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Hi @GTO455,
> I am not an admin in my environment (unless I elevate to admin) and neither are my users. And I am not elevating in this case.
That "A/L" in "2021-02-08 12:00:47.019 [DEBUG] User: Domain\User1 (A/L), ..." indicates that the user is an Admin with a Limited token (i.e. the non-elevated admin UAC scenario.) That's exactly what DEM checks for in its decision to use reg.exe instead of regedit.exe.
The log fragment you pasted was for a DirectFlex run. Does a path-based import at logon also show "A/L" in that "User: ..." line?