New VDA that is using Citrix Profile Management 5.5 based on the Windows 10 Anniversary update. This version of Windows comes with a built in App-V Client (version 10.014393.206). When the profile is fresh (specifically when the %AppData%\Roaming\Microsoft\AppV folder does not exist) The APPV client will complete successfully and applications are loaded. After the first load the client will fail and no app-v application will function.
The APP-V log show the following on publishing: Return code: 0x59702007 - 0xB
To resolve this issue, disable AppData folder redirection.