That's true if there is a locally-managed domain of the same name on the
node. If the domain is managed by the config server you can update
without trouble. I've gotten around the problem like this though:
1. COPY DOMAIN foo localfoo
2. UPDATE NODE * WHEREDOM=foo DOM=localfoo
3. DELETE DOMAIN foo
Correct me if I'm wrong here, but I seem to recall that you could not replicate
domain/policy/mgmtclass from a configuration manager if there were nodes
assigned to the domain on the target (client) system.
Which made it pretty inconvenient.
I've used server-server "export policy" to achieve th