What happens to policy changes when a tag is modified?

When a tag is modified, the correct outcome is that changes are applied automatically to all relevant policies. This means that any associated policies that reference the modified tag will reflect the new settings or configurations immediately. In environments where tags are used to organize and manage resources, modification of those tags seamlessly propagates the changes throughout the system, ensuring that any policies reliant on those tags are updated accordingly. This process reflects a dynamic system design that enhances efficiency and reduces the need for manual intervention or resubmission of policies.

The other potential outcomes, such as requiring resubmission of the policy or no changes occurring until a policy is deployed, misrepresent how tag modifications function. As for tags reverting to default after modification, this would not generally occur in well-designed policy systems, as such behavior would undermine the flexibility and management capabilities that tagging offers.