diff --git a/windows/deployment/do/waas-delivery-optimization-reference.md b/windows/deployment/do/waas-delivery-optimization-reference.md
index 59d11c87f8..45b16770f1 100644
--- a/windows/deployment/do/waas-delivery-optimization-reference.md
+++ b/windows/deployment/do/waas-delivery-optimization-reference.md
@@ -335,6 +335,8 @@ Configure this policy to designate Delivery Optimization in Network Cache server
 
 > [!NOTE]
 > If you format the DHCP Option ID incorrectly, the client will fall back to the Cache Server Hostname policy value if that value has been configured.
+> 
+> If [LocalPolicyMerge](/windows/security/operating-system-security/network-security/windows-firewall/rules#local-policy-merge-and-application-rules) setting is configured (e.g. as part of security baselines) it can impact DHCP client and prevent it from retrieving this DHCP option, especially in Autopilot scenarios.
 
 ### Maximum foreground download bandwidth (in KB/s)