The second way that you can use Loopback Policy Processing is called Replace Mode. There is a big difference in the way that Replace Mode works. When a computer boots up, it will run through its normal processing cycle, taking any GPOs that are linked to the computer's OU and putting those Computer Configuration settings into place. However, once it comes time for a user to log into this computer, everything changes. GPOs that are linked to the user and would normally get put into place upon user login are completely ignored!
Instead of user settings getting put into place for the user, the computer becomes the user. Rather than looking for GPO settings that are linked to the user account, the computer will reprocess through ...