Can't set deny ACE on directory

I have a directory in C:\Program Files that has an ACL consisting of the following:

Administrators:full

Authenticated Users:Read & exec,List folder contents, read, write

CREATOR OWNER:Full

SYSTEM:full

I need to set the Authenticated Users ACE to deny read.

I've setup a GPO with the following settings:

%ProgramFiles%\Mapinfo

Configure this file or folder then: Propagate inheritable permissions to all subfolders and files

Deny | Authenticated users | Read | Apply to: this folder, subfolders and files

Allow inheritable permissions from the parent to propagate to this object and all child objects: enabled

I've tried this on multiple computers and the Authenticated Users remains unchanged. Any ideas what could be going on?