>We do not have any VLANS configured right now its a flat layer 3 network.
Group policy assignments only work for layer 2 adjacent clients to the MX.
If you have an MX, and then a layer 3 switch, and then clients hanging off VLANs off the layer 3 switch then they wont work.
The clients will appear to have the MAC address of the layer 3 switch - and the group policy will actually apply to that. This will make it look like the policy is working - but it is not actually applied to the correct place.