Could you clarify what is not being blocked? Are the clients using web versions or apps on their phones? If apps on the phones than the QUIC protocol is being used. I'd recommend blocking UDP 443 using L3 but please check for collateral damage.
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Do the clients in question have an overriding group policy? I wouldn't think so based on the logs you've shown, but that's the only thing that should override the Layer 7 rules. If not it sounds like some sort of bug you would need to contact support about.
Layer 3 is also processed before Layer 7, but I don't believe you'd get that log entry if you somehow had a layer 3 rule overriding the layer 7