Ok...here's some new information...and this is really going to drive me crazy
While the device in question is plugged in I am seeing 2 instances for it under Windows Device Manager. One under Disk Drives and one under USB Controllers. If my SEP policy is to block both usb and disk drive guid then this device is blocked, but ONLY as far as disk drives are concerned. The 2nd instance listed under the USB Controller section which lists the original USB guid is NOT shown as disabled and if I remove the Disk Drive guid from my block policy the device becomes enabled.
That being said, I can still plug in an older USB thumb drive and it WILL be blocked...
I have attached a screenshot showing 1 blocked old Iomega USB drive, 2 new Lacie USB drives not being blocked...
@Mudit - I completely follow what you are saying. The problem I am having now is that based on the USB guid that you guys are showing me, these new usb devices are NOT being blocked. I have to include the Disk Drive guid within my policy in order for them to be blocked.