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Hi! No, setting "Disable Internet Explorer 11 as a standalone browser" to Enabled with the option Never does not disable IE compatibility mode in Microsoft Edge on Windows 10. That policy only controls whether IE11 can run as a separate browser, not whether Edge can use the IE rendering engine for certain sites. With the option set to "Never," you’re essentially keeping IE11 available as its own application, and IE Mode in Edge remains unaffected.
To actually disable IE Mode in Edge, you need to use the Microsoft Edge–specific Group Policies. In Computer Configuration > Administrative Templates > Microsoft Edge, set Allow Internet Explorer mode to Disabled, and ensure Internet Explorer integration is set to None. Removing any configured IE site lists will also prevent Edge from automatically loading pages in IE Mode.