In one of my recent posts I have posted a bug in AppLocker path rule processing (see: The case of another AppLocker bug). I have opened Technical Support case and AppLocker product group was able to repro the issue and provide a temporary workaround. Here is official Microsoft's response:

We've investigated the issue and it appears to be a problem in the implementation of case-insensitive path comparison for characters outside the ASCII range. Fortunately it seems there is a workaround for the time being. If, in Local Security Policy, one specifies paths in all-uppercase characters, including uppercasing any non-ASCII characters as appropriate, then the rule will match properly. Concretely, for your example 'Mapīte', putting that string with lowercase ī in a rule's path in Local Security Policy will not work; however putting the string 'MAPĪTE' with uppercase Ī does seem to work.

Therefore if path in the path rule contains non-english characters (outside the ASCII 1-127), write these characters in upper case. Unfortunately you cannot use PowerShell for that conversion (by using String.ToUpper() method), because console host doesn't display diacritic characters, so you will have to do this task manually.

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