The policy engine did not attempt to configure the setting - GPO for registry key permissions

Hi,

I'm trying to use a GPO to set permissions for a registry key, but seems that GPO is received on the machine but not being applied. I've used RSOP.msc to check the results and I get the following error message (see image below), I have enforced the gpo and disabled the inheritance.

Is there anything that I need to change in order to have the policy applied?

Regards.