We've been deploying ZCM 11 SP1 update.

HonorClient32WorkstationOnlyCheckbox for WinXP client 4.91 is "working" as of SP1. ZCM no longer attempts to authenticate. (TID 7000753)
HonorWorkstationOnlyLogin for Win7 still seems to have no effect though SP1 supposedly includes a fix. (TID 7007888)

On Win XP, when the option is enabled and no ZCM authentication is attempted, it also seems to completely ignore any cached policies or bundles. Therefore a restricted group policy is not applied and a user can gain unrestricted access to the desktop simply by using the workstation only checkbox. The application window or explorer would also show no application icons.

When the option is disabled or not used at all, ZCM tries to log in. If no server is found, it uses cached policies. Cached bundles seem to also work for a time, but after a few logins the bundles usually go missing until the next ZCM authentication. The bundles are not a big deal for me.

This seems inconsistent to me, or is this working as intended? The option doesnt seem to simply "honor WO" by not authenticating to a zcm server, but also seems to turn ZCM "off" when WO is enabled, disabling all of its policy and bundle functions.