Respect output policy validation result

packages/syft/src/syft/service/code/user_code_service.py

@@ -357,10 +357,13 @@ def is_execution_allowed(
             return IsExecutionAllowedEnum.OUTPUT_POLICY_NONE
 
         try:
-            output_policy.is_valid(context)
+            output_policy_is_valid = output_policy.is_valid(context)
         except Exception:
             return IsExecutionAllowedEnum.INVALID_OUTPUT_POLICY
 
+        if not output_policy_is_valid:
+            return IsExecutionAllowedEnum.INVALID_OUTPUT_POLICY
+
         return IsExecutionAllowedEnum.ALLOWED
 
     def is_execution_on_owned_args_allowed(self, context: AuthedServiceContext) -> bool:

packages/syft/tests/syft/service/code/user_code_service_test.py

@@ -0,0 +1,59 @@
+# stdlib
+from unittest.mock import Mock
+
+# syft absolute
+from syft.service.code.user_code_service import HasCodePermissionEnum
+from syft.service.code.user_code_service import IsExecutionAllowedEnum
+from syft.service.code.user_code_service import UserCodeService
+
+
+class _Result:
+    def __init__(self, value):
+        self.value = value
+
+    def unwrap(self):
+        return self.value
+
+
+def _approved_code():
+    status = Mock()
+    status.get_is_approved.return_value = True
+
+    code = Mock()
+    code.get_status.return_value = _Result(status)
+    code.is_output_policy_approved.return_value = True
+    return code
+
+
+def _service_with_code_permission():
+    service = UserCodeService.__new__(UserCodeService)
+    service.has_code_permission = Mock(return_value=HasCodePermissionEnum.ACCEPTED)
+    return service
+
+
+def test_is_execution_allowed_rejects_false_output_policy() -> None:
+    service = _service_with_code_permission()
+    output_policy = Mock()
+    output_policy.is_valid.return_value = False
+
+    result = service.is_execution_allowed(
+        code=_approved_code(),
+        context=Mock(),
+        output_policy=output_policy,
+    )
+
+    assert result is IsExecutionAllowedEnum.INVALID_OUTPUT_POLICY
+
+
+def test_is_execution_allowed_accepts_true_output_policy() -> None:
+    service = _service_with_code_permission()
+    output_policy = Mock()
+    output_policy.is_valid.return_value = True
+
+    result = service.is_execution_allowed(
+        code=_approved_code(),
+        context=Mock(),
+        output_policy=output_policy,
+    )
+
+    assert result is IsExecutionAllowedEnum.ALLOWED