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If i disable the policy I can set whatever I want as the wallpaper. when the policy is applied it allows me to change the wallpaper/theme but whatever I set it to it remains black. I have copied the policy to do some testing and removed the setting to prevent changing the wallpaper. The GPO works perfectly on all windows 10 machines but on windows 7 machines it just displays a Black background. I have rolled out new company branding via a GPO to all computers on the domain. Wondering if anyone can help me on this very frustrating issue!
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