Index: src/applications/meta/controller/PhabricatorApplicationEditController.php
===================================================================
--- src/applications/meta/controller/PhabricatorApplicationEditController.php
+++ src/applications/meta/controller/PhabricatorApplicationEditController.php
@@ -51,10 +51,13 @@
           continue;
         }
 
-        $capobj = PhabricatorPolicyCapability::getCapabilityByKey($capability);
-        if (!$capobj || !$capobj->shouldAllowPublicPolicySetting()) {
-          // Can't set non-public policies to public.
-          continue;
+        if ($new == PhabricatorPolicies::POLICY_PUBLIC) {
+          $capobj = PhabricatorPolicyCapability::getCapabilityByKey(
+            $capability);
+          if (!$capobj || !$capobj->shouldAllowPublicPolicySetting()) {
+            // Can't set non-public policies to public.
+            continue;
+          }
         }
 
         $result[$capability] = $new;