Anyone ever seen where a local usb printer goes 'offline' as soon as it gets redirected into a session. If you remove the printer, it comes back 'online' locally and works fine? tried the two latest CWA and different VDA versions. it's a lexmark MFP.

Which redirection channel are you using? USB, or printer channel?

USB

So when you USB redirect it effectively removes it from the local machine and sends all the functionality into the session. Instead you should do printer redirect where that usb isn't captured, and the CWA will send the print job to the client, which will then print for you.

Looking for that specific policy

Its under Citrix policies, Printer redirection.