Stage 2 processing
Stage 2 Processing affects the order in which policies are ordered for child processes.
Stage 2 processing is a recommended setting for all deny execute exception policies, or in other words policies that should be applied absolutely last. Stage 2 Processing is particularly important when used for exception blacklist policies (ie. when targetting applications not trusted by white or orange list policies) in order to prevent child processes of white or orange listed applications from being denied execution.