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Thank you for providing the detailed observations and for testing the behavior with the policy both enabled and disabled.
The Remove Default Microsoft Store packages from the system policy are designed to remove selected preinstalled Microsoft Store apps at the device level on supported Windows 11 Enterprise and Education devices.
However, the excessive growth of StateRepository-Machine.srd-wal or StateRepository-Machine.srd that you are seeing is not described as expected behavior in the available Microsoft documentation. The documented limitation for this feature relates to devices that support multi-user sessions and does not mention abnormal StateRepository database growth.
Since you have already observed that the abnormal growth stops when this policy is disabled, that is a useful indication for narrowing down the investigation. I would suggest checking one of the affected clients as follows:
- Make sure the device is fully updated with the latest Windows cumulative updates.
- Review the policy configuration and compare the selected packages with a client that is working normally.
- While reproducing the issue, review:
Event Viewer > Applications and Services Logs > Microsoft > Windows > AppxDeployment-Server > Microsoft-Windows-AppxDeploymentServer/Operational
Please pay attention to Event ID 762 when a package has been successfully removed by this policy. Checking the events around the time the database starts growing may help identify whether a particular package or removal operation is involved.
- If practical, test the policy with a smaller selection of apps. This may help narrow down whether the behavior is associated with a particular package.
I would avoid manually deleting or replacing the files in C:\ProgramData\Microsoft\Windows\AppRepository as an initial workaround, as the available documentation does not provide this as a recovery method for this policy.
If the issue remains consistently reproducible on a fully updated Windows 11 25H2 device, I recommend reporting the behavior through Feedback Hub, using Developer Platform > App deployment as the category and subcategory. I suggest you follow this path for issues encountered while testing this feature. If this is significantly affecting your production environment, opening a Microsoft Support case would also be appropriate so that diagnostic information from an affected device can be investigated in more detail.
References:
Policy-based in-box app removal | Microsoft Learn
Policy-Based Removal of Pre-installed Microsoft Store Apps | Microsoft Support
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