Error: The processing of Group Policy failed because of lack of network connectivity to a DC. This may be a transient condition. A success message would be generated once the machine gets connected

This error is self explanatory, as it states: The processing of Group Policy failed because of lack of network connectivity to a domain controller.

This was because, the Domain Controller was not available as shown below.

Now the DC has been turned on, I am now able to apply group policy correctly as shown below.