@Intellectric Technologies Thanks for posting in our Q&A.
Based on my research, I find someone else has met the similar issue. Please refer to the following link:
https://www.dropboxforum.com/discussions/101001013/cant-apply-organization-policies-/529389
Note: Non-Microsoft link, just for the reference.
So, it is suggested to try to reset Microsoft Office Apps and then check if it works.
Hope it will help.
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