As you are getting "Not Applicable" it seems that your policy is either not enabled in WSO2 IS or not promoted to PDP for testing. Just check if the policy is enabled and promoted to PDP for test. You may also test the policy without promoting to PDP but in both the cases it should be in enabled mode.
I tried your policy in WSo2 IS 4.0.0 and its giving "Deny". And yes as David mentioned its because your policy combining algorithm is "deny-overrides" which is always getting "Deny" as per your default rule as below:
<Rule Effect="Deny" RuleId="deny"/>
So either you need to make your policy combining algorithm as "permit-overrides" or drop the last rule.