I get policy issues all the time (long before the recent ‘local pickup’ issue).
The software wants us to use eBay policies, however, I do not have any set up. Nor do I want to at the moment as everything I sell is random and not bulk items. But yes, frequently I get errors where GarageSale won’t allow a listing to proceed as I have not specified a policy. The problem is, once you do select a policy, for example shipping, it then also wants a returns policy, a payment policy etc.
When I get these errors I have to resort to doing a listing direct using the eBay app…which takes ages.