When clients consume licenses from PolicyPak Cloud, they automatically pick up Group Policy as well (for free). Said another way: If you’re a PolicyPak Cloud customer, you don’t NEED to ALSO license the machine for on-premise. Being able to use Group Policy as the settings delivery mechanism is automatic – because the client has consumed the cloud license. So in this way, you get a “free” on-premise (Group Policy Edition) license (automatically) when a client has consumed a license with PolicyPak Cloud (and continues to check in within the check-in period.) See this video to see exactly how to do it: from here
In this case your Universal License key will have to be enabled for the Group Policy Method. You will not get the ability to automatically enable the Group Policy method when being licensed via PolicyPak Cloud.
In this case, you cannot use PolicyPak Cloud to enable the Group Policy Method. If you wish to enable the Group Policy Method you need to transition from PolicyPak SaaS to PolicyPak Enterprise Edition or PolicyPak Professional Edition. You can still manage Active Directory joined machines, but you must use the PolicyPak Cloud delivery mechanism to perform the operation, and not Active Directory / GPO.