Computer Configuration policy applied first. This happens when the Computer system boots up. Then the user policy is applied when the user logs on. This takes place when the user object is in the same organizational unit.
So Computer Config policy setting takes precedence. User configurations is applied to local users only while computer configuration is applied to the machine itself. First the Computer GPO is applied and then the User GPO. Loopback processing in replace mode enforces the Computer GPO over the user GPO.
