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MAM policies are not directly applicable to Outlook for on-premises Exchange users.
Microsoft Intune App Protection (MAM) policies are not directly supported for Outlook when the mailbox is hosted on an on-premises Exchange environment.
That's correct. Intune App Protection (MAM) for Outlook is designed to work with supported cloud-based mailbox services, such as Exchange Online. If your users are on on-premises Exchange, you'll typically need to rely on other management approaches, or consider a hybrid or Exchange Online migration if MAM capabilities are a requirement.