Applying SCM 2.5 LocalGPO / GPOPack to Windows Server 2003 R2 SP2 results in this error when viewing policy via gpedit.msc...
After restarting the computer, it appears as if no policy changes were applied. Why?
To recreate this, install LocalGPO on a non-domain Windows Server 2003 R2 SP2 computer. Using gpedit.msc, make a change to local policy (password length, for example). Using LocalGPO, backup the policy (to a GPOPack, for example). Using gpedit.msc, change the password length for example) back to a different setting. Then, attempt to apply the policy. The above error will appear, and upon reboot, the policy has not been applied.