Scope of the two Group Policies related to RemoteFX Adaptive Graphics

I would like feedback regarding my understanding of the scope of the two RemoteFX Adaptive Graphics Group Policies, within the particular context of a VDI scenario (i.e. Remote Desktop Virtualization Host + VMs). I am referring to the following two policies:

1. Configure RemoteFX Adaptive Graphics

2. Configure Image Quality for RemoteFX Adaptive Graphics

I understand (1) to apply to the RDVH and (2) to apply to the VM which is providing the remote session.

Cheers,

Etienne