If you can't archive an attendance policy, even though no employees are assigned to it, the policy may still have an attendance cycle that is active.
An attendance policy automatically creates attendance cycles while it remains unarchived. During the cycle cut-off period (the finalising stage), the policy can't be archived, even if no employees are currently assigned to it.
To resolve the issue:
Verify that no employees are assigned to the attendance policy.
Wait for the current attendance cycle to finish finalizing.
Once the cycle has completed, try archiving the policy again.
If you're seeing the time.attendance.validation.archivePolicyWithActiveCycles error, it means the policy still has an active attendance cycle. This is expected behavior and doesn't indicate that employees are still assigned to the policy.

Outcome
After the current attendance cycle has finished and the cut-off period has ended, you'll be able to archive the attendance policy successfully.