VIktorLundberg We are working to promote this change to all go-local and Government environments. I will add the Global Education SKUs question to our list of things to review. Thanks for raising this
KeithT We enabled this for the Exchange SKUs, as EXO is the scope of our work. I would need more data about one of your users to be able to make a determination on what could be wrong (but this data cannot be shared on public forums such as this one). My thought is that because your helpdesk is working with the larger license packs (Microsoft 365 E3 in this case will contain not just EXO Plan 2, but also SPO Plan 2, Teams, Office etc.; Office 365 F3 also contains EXO Kiosk, SPO Kiosk, Office etc.), the conflict you're seeing is likely from the Office licenses. To go around the problem, license assignments would need to be more granular - for example, instead of assigning the whole packs, your helpdesk should go and enabled E3 completely, but under F3 disable Office.
From our telemetry, Office SKUs are still defined in such a way that they do not allow stacking.