Posting this for any other tech's that have to figure this out on their own.
Here's what I found out so far.
It doesn't like the wildcard for some reason. * but without it, it sent me an email the next day. Wont know till tomorrow if it works on only a brand new site after turning the policy on or also old existing sites in your vault after turning policy on. Also it ran the policy in middle of the night and sent the email at that time also.
exp. inclusive user email list, policy value field, passwords 1 day old: