Extensions installation must be blocklisted by default.
Extensions are developed by third party sources and are designed to extend Google Chrome's functionality. An extension can be made by anyone, to do and access almost anything on a system; this means they pose a high risk to any system that would allow all extensions to be installed by default. Allows you to specify which extensions the users can NOT install. Extensions already installed will be removed if blocklisted. A blocklist value of '*' means all extensions are blocklisted unless they are explicitly listed in the allowlist. If this policy is left not set the user can install any extension in Google Chrome.
How this relates to the STIG checklist: STIG vs SCAP benchmark.