After losing several hours and a lot of hair, I finally found an error in this sample file. On line 69, where it reads "send_notification", it should be "show_notification". Because of this error, it's causing the audit denies to neither send a telemetry event nor notify the user as MDE is ignoring both options when one is bad.
As far as I can tell, this error doesn't exist in any of the other macOS sample files.