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Outlook 2013 Upgrade - new OST

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We are on Office 365 tenant and currently testing upgrading from Office 2010 to 2013. After the upgrade  when we open Outlook 2013 it creates a new .ost file. We most definitely don't want our entire organisation's email freshly downloaded to a new .ost so we set the Outlook 2013 group policy 'Do not create new OST file on upgrade'. However when this is set and we open Outlook after an upgrade we then get the following error messagewhich kind of makes a mockery of the group policy setting. Any ideas how we stop this message appearing and stopping a new .ost being created?


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