The "File Encryption Required" policy in Intune applies specifically to files that contain corporate data. According to the Intune documentation, only data marked as "corporate" is encrypted according to the IT administrator's app protection policy. This means that files that do not contain company data, such as system-generated files, web caching, and temporary files, may not need to be included in the encryption policy.
However, it is essential to ensure that any files that could potentially contain sensitive or corporate data are encrypted to comply with the policy. Therefore, while you can leave out certain files that are strictly non-corporate, it is advisable to assess the risk associated with any files that are not under your control.
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