When trying to place the target device write cache on local disk it is falling back to the server side cache every time the target device boots. This is only seen when using a BDM boot method, there is no issue visible when using PXE boot.

Ensure that the Master Image VM and the template that will be used to create the target devices have matching hardware, specifically hard disks. In a scenario where BDM is in use, the target device is going to have 2 extra hard drives for BDM and write cache.

This is documented in Citrix here - Citrix Documentation - Preparing a master target device for imaging.

Problem Cause

This happens because the hardware configuration of the template used by the XenDesktop setup wizard is different from that of the Master image VM when the vdisk is created. The OS is not aware of the WC drive or the BDM partition drive as they were not present when the vdisk was captured.