The VPN Policies are for outbound traffic.

That explains it all then! How do I then stop using the VPN for this specific device?

Can explain in more detail what specific settings you made on both the FTTH and GL-AP1300?

I just forwarded a port from FTTH box to GL-AP1300, and then GL-AP1300 to forward to the Mesh router, and then Mesh router to the intended device. All the same and with the correct WAN/LAN IPs. On the GL-AP1300 Firewall page, I set up wan as External Zone and lan as Internal Zone

But when I use the alternate set up, the device connects to GL-AP1300’s guest wifi where I thought it was going to bypass all in/outbound traffic