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Practicing GPO Loopback Processing in Hyper-V VMs

#1
07-06-2020, 03:42 AM
In Active Directory environments, Group Policy Objects (GPOs) play a critical role, and loopback processing adds a different layer of functionality that can be especially potent in controlling user and computer policies. With loopback processing, GPOs that apply to users are resolved based on the computer to which they log in. This becomes really handy in situations where you want different policies based on session types, like when users log into shared workstations.

When I work with loopback processing, I like to set it up in a Hyper-V VM to test the behavior without affecting the production environment. With a couple of VMs, you can simulate various user scenarios. Once you configure one VM as a Domain Controller, you can set another as a member server or even a Windows client.

To start practicing this in your Hyper-V environment, create a Domain Controller VM. Make sure you have Windows Server set up. Install the Active Directory Domain Services role through Server Manager. Once the roles and features are installed, promote the VM as a Domain Controller and imbed your AD structure within it. Don’t forget to configure the default domain policies at this stage.

After creating the Domain Controller, the next step is to create multiple Organizational Units (OUs) to reflect different user groups. For example, you could create an OU for ‘Student Users’ and another for ‘Staff Users’. Once you have your OU structure in place, populate those OUs with test user accounts to better simulate your scenarios.

Make sure you also have a couple of client VMs prepared to test the policies you create. For instance, I typically create one VM that acts as a regular user machine and another that resembles a shared workstation scenario. The shared machine could have loopback processing enabled while the regular user machine operates normally.

When you go into Group Policy Management, you can create specific GPOs for each OU. On the Domain Controller, right-click on your OU and create a new GPO. In the GPO settings, configure the policies specifically for users. For example, in the ‘Staff Users’ OU, I would restrict access to certain applications and allow specific settings that pertain only to the staff group. Make those same distinctions in the 'Student Users' OU but possibly less restrictive. This equips you with a good point of reference to compare and visualize the differences.

Once your GPOs are set up, the next step is where loopback processing comes into play. You should configure the loopback processing in the GPO that gets applied to the shared workstation. Right-click the GPO linked to the shared machine’s OU, click on ‘Edit,’ and navigate to Computer Configuration > Policies > Administrative Templates > System > Group Policy. Here, you'll see the "User Group Policy loopback processing mode" setting. Set it to "Enabled," and then choose "Replace" as the mode.

What does this mean? In "Replace" mode, the user policies that apply will completely override any user-specific policies that are applied when that user logs in from a normal machine. For testing, I log in as a user from the 'Staff Users' OU on the shared VM and observe that the user policies apply per the GPO linked to the shared machine rather than what’s defined in my user OU. This allows your users to have a tailored environment based on the machine's settings rather than their own, which can be essential for environments like computer labs or shared workspaces.

In contrast to the shared workstation's GPO, you wouldn’t want to apply loopback processing on a user’s personal machine. I typically recommend keeping it off (or set to 'Merge') on machines where personal configurations should remain intact. Just remember that loopback processing mixes with Active Directory permissions, so if a user lacks proper permissions for a GPO linked to a computer, that policy won’t apply even if it’s configured under the loopback setting.

You might also want to test the impact of loopback processing by logging in as a student user on the shared workstation. In this case, the user-specific GPOs will either be ignored or will revert to whatever is configured under the shared machine's GPO. You can experiment with allowing some features for students while restricting others to see how effective your loopback processing is in real scenarios.

Another area I find useful when testing is the use of security filtering. You can apply additional constraints by only allowing certain groups of users to apply specific policies. For instance, you can set the shared workstation GPO so only users in the 'Staff Users' OU can access specific software or features. Through this, you can see how different object permissions impact policy application in real-life scenarios.

Logging and remote management are also important when practicing loopback processing. Make sure you have proper logging enabled to see what policies are being applied during user logins. This can help in troubleshooting issues, especially when a user logs in and their expected settings don't appear. The Group Policy Results tool is advantageous when implementing this, providing a summary of policy application that helps visualize both user and computer-side policies.

On another note, handling backup and recovery for your setup is something worth considering. A reliable backup solution for Hyper-V, such as BackupChain Hyper-V Backup, can be programmed to run incrementally or systematically, ensuring that your domain controller, policies, and test environments are covered without taking much downtime.

Working with GPOs and loopback processing can get complex, especially as you add more layers to your testing. The best piece of advice when working with policies is to constantly verify their application. Use tools like the Group Policy Result wizard or even PowerShell to check which policies are applied to which users. Simply run:


gpresult /h gpreport.html


This generates a report that I often find beneficial. You have visibility into both user and computer policies in one file. It makes it easier to spot conflicts where policies might be negating each other.

As you progress, you can also simulate different user logins or even unintended configurations to see how your policies hold up. Testing becomes easier when you replicate conditions as close to real-world usage scenarios as possible. Try logging in as a user on different machines to see how policies apply differently, and watch out for any unintended consequences from the loopback processing configuration.

In most cases, I heavily advise documenting any changes made within the GPOs. Change logs can save you from a lot of hassle, especially when you need to backtrack or explain why certain settings were applied or if a user brings up a complaint regarding something that has changed unexpectedly.

When you’re running tests in a lab environment, you’ll learn about potential pitfalls that could crop up in production settings. Sometimes you might configure a policy that seems innocuous—like the color scheme of the user desktop—but find out later that it has broader ramifications than initially expected. Always think about the big picture and which users or machines the policies will impact.

Once you feel confident with how loopback processing works, you may want to experiment with other types of processing. For instance, how does merging function in conjunction with loopback? Are there instances where you'd allow for a mix? Such testing not only sharpens your skills but also prepares you to be resourceful when pushing policies in a more complex operational environment.

Testing loopback processing in Hyper-V provides a safe playground where you can experiment and build your expertise. Each aspect teaches a lesson about permissions, policy application order, and how computers and users interact within the domain.

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Philip@BackupChain
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Practicing GPO Loopback Processing in Hyper-V VMs

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