If it is physically off the domain, and you ARE using a local account to log on, and it still carries the group policy settings, not only would i be very surprised, but something is wrong. To answer your question - yes it's physically removed from the domain and now joins a workgroup. I'm not sure if power settings and windows update settings fall under the same category but OP's scenario sounds quite possible.
For info if you have this on a computer that has not been removed from the domain.
Export the HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\Current Version\Group Policy hive then delete it.
As I already mention in my Group Policy Design Guidelines post, applying filtering Group Policy Objects via security groups can have its issues and should only be used for applying setting by exception.Note: In older version of the Group Policy Management Console, this will be visible under the “Security Group Membership when Group Policy was applied” under the “Summary” tab.As you can see below this will show you all the security group memberships that were used when the Group Policy was last processed on that computer.My pblm is that when i tried to update this using gpupdate /force command errors are coming. a) name resolution failure on the current domain controller b) active directory replication latency computer policy could not updated successfully. A forward lookup zone for your domain exist and at least initially allow dynamic updates While not required I always create a revered lookup zone for the local subnet.To ensure the all of the data necessary for AD operations run the following command netdiag /v /l /fix If allot of data is missing you might want to run the command more than one.