When you experience the subject behavior, the Application event log may contain:
Event Type: Information
Event Source: Application Management
Event Category: None
Event ID: 301
Description: The assignment of application <Package_Name> from policy <Policy_Name> succeeded.
When the application is initially deployed, the GPO name is derived from the ExtensionName attribute, and never changed at:
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Group Policy\AppMgmt\GUID\<GPO Name>
To workaround this behavior:
1. Start / Run / Dsa.msc / OK.
2. Right-click the GPO and press Properties.
3. Select the Group Policy tab.
4. Right-click the application name in Group Policy Object Links and press Rename.
5. Type the name you want.