If a policy log is created, this states that the executable was launched as a Basic User, whereas in reality it was blocked. In fact, exactly the same as on XP aside from one additional null value. Looking at the registry, the policy editor seems to be doing all the right things in the 'Safer' policies key. Select 'All users except local administrators' 7.

The Windows 7.1 test was repeated with UAE both on and off, just in case of incompatibility with one condition or other. If no software restrictions are defined, right click the Software Restriction Policies node and select New Software Restriction Policy 5. I then tested on a fresh install of Windows 7.1 with out-of-box settings, and found that this displayed the same problem as Windows 10, ie Basic User policies resulted in the program being blocked. To see if this was a Windows 10-specific issue I did some tests on Windows XP (with the Levels registry value added) on which everything worked correctly. This is so even if the default policy is Allow. Found that using the local or group policy editors, I can set up a path-based Software Restriction Policy to either Allow or Disallow execution on Windows 10, but any attempt to set a Basic User policy results in executables being blocked completely.

Windows 10 software restriction policy