If you change the IT policy to a more relaxed one, that does not mean, the devices settings are also changed. Also, some defaults apply.
If the devices settings were: no password, but, if password, lock after 3 minutes, and you set the policy, the password will be enforced, and even If the policy forces a 30 minutes minimum, the device will lock after 3 minutes.
If you change the policy back, the devices settings are still present. You have to change that on the handheld.
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