Connect.TCP policy disables template updates and software installing

Following this section:

This immediately prevented any template using dnf from installing any software:

Error: Failed to download metadata for repo ‘updates’: Cannot prepare internal mirrorlist: Curl error (56): Failure when receiving data from the peer

Should an issue be created for this, or am i doing something wrong?

You probably made an error in your policy file when you added the new policy.
Check the the changes that you’ve made.
You can also run this command in dom0:

journalctl -f -n0

And try to update the template, then check the log in dom0 to see if there are any policy errors.

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