WDAG not working with Office Apps

[tgs-ts]

Untrusted sample documents are still opening in protected view and not Application Guard. I have application guard enabled on my test machine and group policy option for WDAG managed mode enabled and set to 3. 

WDAG works fine in Edge. Just can't get it to work for Office Apps. 

Any ideas?

[#2]

Forgot to mention - Test machine is Windows 10 Enterprise 20H2 and my test user has an E5 license assigned.