policies are working on request and response in micro GW

Policies added in Apigee edge are not working on request and response in micro GW.

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Yes, policies added to Microgateway proxies will not work. This is documented in the Apigee docs.

You need to use Plugins to apply security, quota, spike rules to microgateway aware proxies.

https://docs.apigee.com/api-platform/microgateway/2.5.x/use-plugins