Explanation
https://docs.paloaltonetworks.com/pan-os/10-0/pan-os-admin/policy/security-profiles.html
First note in above link states:
"Security profiles are not used in the match criteria of a traffic flow.
The security profile is applied to scan traffic after the application or category is allowed by the security policy."
The first thing the firewall checks per it's flow is the security policy match and action.
The Security Profile never gets checked if a match happens on a policy set to deny that match.

Explanation
Graphical user interface, text, application Description automatically generated

Explanation
The Device Telemetry data is stored on Cortex Data Lake , which is a cloud-based service that collects and stores logs from your firewalls and other sources. Cortex Data Lake also enables you to analyze and visualize your data using various applications.
To use Device Telemetry, you need to install a device certificate on your firewall3. This certificate authenticates your firewall to Cortex Data Lake and encrypts the data in transit.