Found out split-gpg2-dom0 is needed from older posts. Started over with new server appvm and deleted clients ~/.gnupg
Got to the import keys and owner trust steps and got this
[user@dev dev-gpg]$ gpg --import public-keys
gpg: directory '/home/user/.gnupg' created
gpg: error writing keyring '[keyboxd]': Attempt to write a readonly SQL database
gpg: error reading 'public-keys': Attempt to write a readonly SQL database
gpg: import from 'public-keys' failed: Attempt to write a readonly SQL database
gpg: Total number processed: 0
Turns out there was a subkey which can only encrypt. Which, as the Subkeys vs primary keys sections warns about, prevents signing. Making a signing sub key fixed it.
Since this is marked as the solution, the solution to the original problem was what @parulin said. New qube. Or restore a backup before importing keys.
Tried this again on a fresh qubes install, and got denied trying to do anything between qubes with the policy file in place. Didn’t work until installing split-gpg2-dom0. Think you really do need it.
Saw the file, didnt know about the python tests. Thats why I tried on another laptop with a fresh qubes install. Made the policy file. Then the server qube couldn’t do anything with other qubes. Anything got denied until that policy file was deleted or split-gpg2-dom0 was installed. Doesn’t make sense that permissions on something that may not exist would have that effect. Possible there was a typo, but that was a simple line.
Thought there might be a dependency pulled in, but it only needs /bin/sh and python. So the fact that you can remove it is curious.