Yes, the expected behavior is the user who logins to the server will have ALL user policies blocked except for any user policies applied at the server OU.
The user account is in a separate "User" OU and all the user policies applied here are blocked as expected. Its just the user policy applied at the site level that is still being applied.
Our OU structure is something like this:
Domain
Server OU
- lookback policy applied here
User OU
- multiple user policies applied here
Site
- several user policies applied here
When the user logins into the server, all the user policies applied at the User OU is NOT applied (as expected) but the user policies at the Site level are still being applied (which is not what I expect).
Thanks.