The most common reason for items not applying is that the Internal Item Level Targeting within a AppSet doesn’t match/evaluate to TRUE on your target machine.

For instance, the Internal (Pre-defined) Item Level Targeting (ILT) which specifying an application version in the AppSet for an application that you don’t have.

Usually, the Internal ILT is tied down for “Version X and Later”, but it could be very version specific.

See this video to bypass the ILT:  https://kb.policypak.com/kb/article/521-bypassing-internal-item-level-targeting-filters