In experimenting with this, I have it working... somewhat. When the iPad enters the iBeacon area, it goes into single app mode with the restrictions that I configured. However, it won't come out of that iBeacon zone. I'm guessing that since the iPad is in single app mode, it does not "listen" for other iBeacons or remove from existing zone(s) because, well, it's in single app mode. Can anyone confirm? And is there a workaround? I tried this with both ios 9.3.5 and 10 beta.
Does any other kind of profile that does not single app mode the device work as expected? I wonder if putting the device in single app mode prevents self service mobile from being backgrounded properly and unable to monitor the current ibeacon region. Also, I'm sure you have it set, but just to double check do you have 'monitor ibeacon regions' set in Mobile Device Management Settings?