Hi Pandher :)
I'll give you a cheesy suggestion which always works...
Step 1: Open your Registry
Step 2: Click Computer
Step 3: Hit "Ctrl F"
Step 4: Type "EXCLUSIONS"
Step 5: Keep clicking Next till you spot an entry preferably under "Computer\HKLM\Software\Symantec\SEP\........."
PS: Please make sure that after the policy is updated the policy serial number is updated on the client before you follow this drill.
Keep us posted on what you find :)
Cheers :)