Use fine-grained password policies for different password/account lockout rules for specific users or groups in the same domain.
A separate GPO linked to an OU is not the supported way to give different domain user accounts a different password policy. Account policies can be defined in only one GPO linked to the domain, which is why password policy is configured in the Default Domain Policy for the domain-wide default. If those settings are configured in another GPO, they affect only local user accounts on the computers that receive that GPO, not domain user accounts.
For the requirement of keeping one default policy for most users and a stricter or different policy for admin/service accounts, FGPP is the correct approach:
- Keep the domain-wide default password policy in the Default Domain Policy.
- Create one or more fine-grained password policies (FGPPs).
- Apply those FGPPs to the specific users or groups for admin/service accounts.
- Set precedence so the custom FGPP overrides the default policy for those accounts.
In Active Directory Administrative Center, the FGPP path is: Tree View → domain → System → Password Settings Container → New → Password Settings.
Key point: OU targeting is for GPO scope, but password/account lockout exceptions for domain accounts are handled by Password Settings Objects / FGPP, not by linking another password-policy GPO to an OU.