Group policies' precedence order LSDOU and Group Policy inheritance also decide which policy will win when we have some conflicting settings. Let's look at this further with an example:

As per the preceding diagram, we have two policies inherited to Users OU. Policy 01 is the domain-linked Group Policy. Policy 02 is the OU-linked Group Policy. Each of the Group policies has its own values defined for the three selected settings. Based on the default Group Policy inheritance, the Users OU will have both policies applied. According to LSDOU, Policy 02 will have the lowest precedence value as it is the closest policy for the Users OU. For Password Policy Settings, only Policy 01 has a value defined. Therefore, even though it's the least preferred Group Policy, that value will apply to the Users OU. For Windows Firewall Settings, only Policy...