Proxy fallback action and different auth methods

This issue is similar to another post on here, but not the same I didn’t want to hijack his thread.
The proxy fall back action isn’t behaving as I would expect, my understanding is if the filter assignment fails it falls back to this action.
I have the global filter setup to be transparent and none
I have a group of PC’s with the agent installed for authentication when switching between users the agent fails. When this happens the user cannot browse anywhere, they get an authentication failed error message, until they restart the agent.
I have a proxy profile setup for the agent PC group, I have assigned a group of users to it and set it to transparent agent.
I have the fall back action set to default filter.

Instead of getting the authentication failed error I would like to users to fall back to the global transparent none policy and just get that more restrictive filter vs no browsing.

Thank you