This policy setting allows you to manage the certificate propagation that occurs when a smart card is inserted. If you enable or do not configure this policy setting then certificate propagation will occur when you insert your smart card. If you disable this policy setting certificate propagation will not occur and the certificates will not be made available to applications such as Outlook.
Turn on certificate propagation from smart card
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HKEY_LOCAL_MACHINE -> SOFTWARE -> Policies -> Microsoft -> Windows -> CertProp # CertPropEnabled
Windows Components -> Smart Card