The plot thickens:
It looks like snapvol.cfg already has an exclusion listed for local Group Policy objects: "exclude_path=%SystemRoot%\System32\GroupPolicy" -- so where is it pulling in these old registry settings from? Must be missing another exclusion location elsewhere.
Another update on this:
My problems inherently revolve around USB Redirection issues, and it seems like it's related to a separate set of issues.
I found a different thread which more closely resembles my particular configuration and the issues that I'm facing -- I will attempt the workarounds mentioned in this article next: Appstack and Horizon USB issues when UEM in installed but not configured
The post you are referring to is that USB redirection does not work anymore when UEM is installed but not configured.
Which Appstack template are you using? Policies are not stored in a folder but it's a regsitry key (which also should be excluded in snapvol.cfg) but we have seen policies being added to that reg key (this was waaaaaay back though, even pre Appvolumes).
Policy is HKEY_LOCAL_MACHINE\SOFTWARE\Policies (and off course the WOW6432Node tree).