CSP Configuration policy showing as "Not Applicable"

I am trying to add a config policy using the Network proxy CSP to my AVD deployment. They are all running Win11 Enterprise, but the policy will not take effect on the VMs. Intune shows them as "Not Applicable", but according to the documentation, there is no reason why they should not apply. They are in a group and the policy is applied to the group. I cannot find any logs showing why Intune thinks that policy is not applicable to this host pool.