Reset profile button in grayed out in Citrix Director for certain users and hence the profile for those users cannot be reset from Director. This issue is seen for users whose profiles are hosted on Server 2012 R2.

Caution! Using Registry Editor incorrectly can cause serious problems that might require you to reinstall your operating system. Citrix cannot guarantee that problems resulting from the incorrect use of Registry Editor can be solved. Use Registry Editor at your own risk. Be sure to back up the registry before you edit it.

Created the below registry key on the VDA:

1. Locate and then tap or click the following registry subkey:

   HKEY_LOCAL_MACHINE\System\CurrentControlset\Services\ProfSvc\Parameters
2. On the Edit menu, point to New, and then tap or click DWORD Value.
3. Type UseProfilePathExtensionVersion.
4. Press and hold or right-click UseProfilePathExtensionVersion, and then tap or click Modify.
5. In the Value data box, type 1, and then tap or click OK.
6. Exit Registry Editor.
7. Restart the VDA.

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Problem Cause

Roaming profiles on Windows 2012 R2 VDA need to be V4 in order to be able to reset from Citrix Director.

Reset Profile Options Is Greyed Out In Citrix Director

On all VDA's running Windows 8.1, Windows 8, Windows Server 2012 R2, or Windows Server 2012 on which you will use Roaming User Profiles, use Registry Editor or Group Policy to create the above registry key DWORD Value and set it to 1. 

Enabling the user of separate profile versions by creating this registry key help ensure that future operating system upgrades go smoothly, and facilitate the ability to simultaneously run multiple versions of Windows with Roaming User Profiles.

After you configure the UseProfilePathExtensionVersion registry entry, you have to restart the computer. Then, Windows 8.1, Windows Server 2012 R2, creates a user profile and appends the suffix ".v4" to the profile folder name to differentiate it from version 2 of the profile in Windows 7 and version 3 of the profile in Windows 8. Windows 8.1 and Server 2012 R2 -based computers that have update rollup 2887595 installed and the UseProfilePathExtensionVersion registry entry configured use version 4 of the profile.

Reference: https://support.microsoft.com/en-us/help/2890783/incompatibility-between-windows-8-1-roaming-user-profiles-and-those-in