This policy setting allows you to manage whether notifications are shown to the user when a DHCP-configured connection is ...

"This policy setting allows you to manage whether notifications are shown to the user when a DHCP-configured connection is unable to retrieve an IP address from a DHCP server. This is often signified by the assignment of an automatic private IP address"(i.e. an IP address in the range 169.254.*.*). This indicates that a DHCP server could not be reached or the DHCP server was reached but unable to respond to the request with a valid IP address. By default, a notification is displayed providing the user with information on how the problem can be resolved.

If you enable this policy setting, this condition will not be reported as an error to the user.

If you disable or do not configure this policy setting, a DHCP-configured connection that has not been assigned an IP address will be reported via a notification, providing the user with information as to how the problem can be resolved."