However devices which use Fido2 such as fingerprint readers and YubiKey devices are not detected in the browser,
FSlogix rules are blocking access to the Chrome.exe file. FSlogix rules are used to hide applications for users.
However these were inadvertently applied to System account and administrators group which prevented Fido2 redirection. After removing the rules redirection started working.
A CDF trace shows this error.
165837 7 2024/09/04 21:29:47:15139 29492 12616 CtxSvcHost.exe(FidoSvc) 0 Error FidoNpServerConn::ParseAndValidateAllowedProcesses the process path is not valid or does not exist, skipping this
This is what should be seen in a working scenario.
1150436 7 2024/08/02 18:28:00:13629 7192 6536 CtxSvcHost.exe(FidoSvc) 0 FidoNpServerConn::ParseAndValidateAllowedProcesses Process Allowed C:\Program Files\Google\Chrome\Application\chrome.exe
A ProcMon log shows that the "Citrix WebAuthn Redirection Service" used by Citrix is unable to access Chrome.exe through MS API CreateFile() around that time.