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Lens Overlay lets users issue Google searches by interacting with a screenshot of the current page laid over the actual web contents.
There is no user setting to control this feature, it is generally made available to all users with Google as their default search engine unless disabled by this policy.
When policy is set to 0 - Enabled or not set, the feature will be available to users.
When policy is set to 1 - Disabled, the feature will not be available.