Endpoint Security add-on and the "Antivirus not installed" misconfiguration

I'm running a trial for MEDC with the Endpoint Security addon enabled and I'm not clear on one of the misconfiguration exceptions included. The tile of the exception is:

Antivirus (not considering Windows Defender) not installed

Does this mean any system running Microsoft Defender as it's primary A/V will appear as a critical misconfiguration? If so, this is very confusing as Defender with cloud protection enabled is as-good or better than many commercial anti-virus solutions yet get's lumped in with completely unprotected systems.

Does adding an exception to this rule mean any system that legitimately had NO anti-virus enabled AT ALL would now be ignored?