Hello @Josh Keenan,
My name is Henry and I am happy to assist with your inquiry, and appreciate you contacting LastPass Support!
I am sorry about the confusion this may have caused you. This message refers only to how you have configured that specific policy (which users it applies to or other settings on it). This will not affect the vault data of any user and the same message shows when you disable every policy.
Please let me know if this worked or if further assistance is required.
Thank you,
Henry | Customer Care