We have performed below to replicate the issue:
After updating device to iOS 10.2 while the device is enrolled, request clear passcode on the device, device stay locked.
Re-enrol the device. Send the command again and device stay locked
Remove AirWatch Agent and re-enrol device, tried the device clear passcode command again, still stay locked.
This has been tested and replicated on iPhone 5s, iPhone 7plus, iPad mini2, where as iPad Air 2 and iPhone 6 plus unlocked after command sent.
from log, we have identified that it could be something to do with AppleKeyStore.
We are now testing against working device to see the difference in behaviour.
We have also tested against MobileIron and isolate to AirWatch issue only.
Stay tuned for more update…