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Played around with this some more and re-enabled what i originally setup following this guide. I'm back to a working setup on published apps, and 'some' desktops. But the desktops we have with userlayers are still flashing then erroring out. So it seems my issue was with the UL based desktops.

Which browser are you trying with. Edge ? Did you enter ctxuvi exclusions for Edge ? If yes it does not work and you have to remove msedge.exe from the multistring key. Check the value Key: HKLM\SYSTEM\CurrentControlSet\services\CtxUvi Value Name: UviProcessExcludes Fido2 uses a virtual channel and its enabled by default. Further configuration is not necessary if workspace app and vda are at least on level 2112 or higher.

Thanks Christian.. It is Edge. We have not placed Edge in UviProcessExcludes for a while since the need was removed. My issue seems to be limited to Userlayer based machines.