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I am having trouble with group policies and just need to make sure I understand the hierarchy correct. The attached pic shows the policies numbered. My understanding is it writes #1 If anything is different in #2 it overwrites #1 and so on. Or do I have it backwards where it starts with 5 and keeps overwriting going up until reaching #1?

Group_Policy_1.jpg
Group_Policy_1.jpg960×540 51.2 KB
9 Spice ups
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This explains it better than I can.

2 Spice ups
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Group policy objects are inclusive and basically cascade down from the point you link them (unless you explicitly block inheritance at that level) at which point if you want A different policy / set of policies to apply you can apply a policy at that blocked level without your policies conflicting.

You can set conditions so that they only affect certain users / groups in AD if you wish or you can use delegation tab > advanced to explicitly allow/deny certain groups (such as domain Admins for mapped drives policies )

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Your screenshot doesn’t display the link order.
LSDO. Local Site Domain Ou.
Link order is processed from largest to smallest.
Also you have a lot of enforced policies. Not sure why, usually there is no reason for that.
Enforced overrides lower linked GPOs unless they themselves are enforced.