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Hi @atripp,
I just tested the implementation of this with ProGet 2023.1 with the aforementioned atob npm package. The filtering works perfect. The package uses "MIT OR Apache-2.0", and as long as at least one of those two licenses is configured as allowed, the package can be downloaded. Only when both licenses are configured as "blocked", the package is also blocked. This works 100% as expected!
When I check the general page of the atob package, "License Information" on the "Overview" tab displays both licenses and their corresponding blocking configurations correctly.
However, when I go to a specific version, the version's "Overview" tab will always state This package has a MIT license, and may be used because of configured license filtering policies, even if MIT is actually blocked and only Apache-2.0 is allowed. This only changes when both licenses are blocked (In which case the page states Packages with the MIT license cannot be downloaded due to a global license rule).
Looks like this is just optics. As I said, the blocking itself seems to work exactly as expected.