This policy setting allows you to block the user from resetting their device lock authentication (PIN or password) using ...

"This policy setting allows you to block the user from resetting their device lock authentication (PIN or password) using the capability provided by Exchange.  If you enable this policy then the user cannot reset the device lock authentication (PIN or password). The only way to unlock the device is by doing a full reset of the device.  If you disable this policy, then the user is able to reset the device lock authentication (PIN or password) if that capability has been provided by Exchange.  If you do not configure this policy, then existing device-specific policies that control authentication reset on the device are applied."
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