Hello,
I am not quite sure what is happening with the GPOs but here is what I have.
I have two GPOs A and B with different settings for the policy under: computer configuration->windows settings>security settings->local policies>security options->Networks security: LAN Manager authentication level.
GPO B applies to only a specific group via security filtering and sets the setting to Send NTLMv2 responses properly.
GPO A on the other hand should apply to everyone else and sets to Send and receive NTLM responses.
Regardless of the link order, GPO A is not applying. If I set define this policy setting and set to Send and receive NTLM responses for a machine where GPO B does not apply, the NLTMv2 response is still set and option becomes locked on the machine. If the policy is not defined in GPO A, the option is unlocked and can be changed on the machine. I have also tried to enforce GPO A, but it has the same behaviour.
Thanks.