The following policy is configured from Active Directory GPO.
User Configuration\Administrative Templates\Start Menu and Taskbar
Turn off all balloon notification :Enabled

In spite of creating this setting, customer found that the password notification balloon was sent to client device which may mislead end user to change their password.

This behavior is by design and the balloon notification is controlled by OS policy not Citrix product .

This policy is assigned to user:
If the user is using a domain user account on log into the client device on which the password expired soon. The notification will pop up on the client device system tray.
If the user is using non-domain user to log into client device and the domain user whose password expires soon to log into the VDA, the notification will pop up on the
VDA. User should view this popup in ICA session as the windows itself is enumerating from server side.

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Problem Cause

This is by design.

Balloon Notification Shows Up on Client Device Even Though it is Disabled