How can specific users be exempted from a tenant-scoped Microsoft 365 Apps Policy?

Hello,

I am looking for guidance regarding Microsoft 365 Apps Cloud Policy Service behavior and policy precedence.

Current configuration:

In Microsoft 365 Apps Admin Center → Policy Management (config.office.com), we have the following policies:

Policy 1

Name: Shorten Meeting Global

Scope: Tenant

Priority: 0

Configured settings:

Shorten appointments and meetings = Enabled

Reduce the end time of short appointments and meetings = 5 minutes

Reduce the end time of long appointments and meetings = 10 minutes

Policy 2

Name: Test

Scope: User (Security Group)

Priority: 1

Assigned only to a dedicated test group

Relevant settings configured as Not Configured

Observed client behavior:

On corporate-managed devices, affected users receive the following registry values:

HKCU\Software\Policies\Microsoft\Cloud\Office\16.0\Outlook\Options\Calendar

shortenevents = End_Early

endearlyshort = 5

endearlylong = 10

The Outlook option:

File > Options > Calendar > Shorten appointments and meetings

is greyed out.

Additional validation:

Using the same Microsoft 365 account on an external non-corporate device:

The above registry path is not present.

The Outlook option is editable.

Testing performed:

A user-scoped Cloud Policy was created and assigned to a dedicated security group.

For the "Shorten appointments and meetings" setting, only the following options are available:

Enabled

Not Configured

There is no Disabled option.

but the Tenant policy continued to apply and the Outlook option remained locked.

Questions

Is there a supported way to exempt specific users from a tenant-scoped Microsoft 365 Apps Cloud Policy when the setting only supports "Enabled" and "Not Configured" and does not provide a "Disabled" option?

Does Not Configured in a User-scoped policy allow evaluation to continue to the lower-priority Tenant policy?

If policy precedence is changed so that:

Test Policy = Priority 0

Tenant Policy = Priority 1

would the User policy potentially suppress the Tenant setting?

Is there a supported way in Microsoft 365 Apps Cloud Policy Service to provide exceptions for specific users while keeping the Tenant policy as the organizational default?

Has anyone successfully implemented an exclusion or override scenario for the "Shorten appointments and meetings" setting?

Any guidance or documentation references would be greatly appreciated.

Thank you.