From time to time, a Microsoft Group Policy Preference item is not compatible with PolicyPak trying to process it with PolicyPak Preferences component.

We have worked around many of these items, but some still remain.

As such, we have recommended that all on-prem customers un-license PolicyPak Preferences component unless its absolutely necessary for a specific use case.

This problem only manifests itself when the computer is DOMAIN JOINED and then also getting Microsoft Group Policy Preferences items while PolicyPak Preferences component is licensed.

To that end, here is the documentation to un-license a single component, like PolicyPak Preferences: If you’re an on-Prem cloud or MDM customer.
https://kb.policypak.com/kb/article/240-what-if-i-want-to-unlicense-one-component-like-pppreferences