Please note, this behavior does not happen when using Citrix License Activation Service (LAS).

After an upgrade to PVS 2507, 2402CU3 or 2203CU7, the PVS FARM properties in the console may show a yellow warning.  In the Licensing tab you will see a message saying the license server is not entitled. Re-running the configuration wizard will clear the error for apprx 12 hours. 

 Disclaimer:

"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."

The addition of LAS licensing to the PVS component has introduced a bug in the current licensing lookup process.

If you deploy License Activation Service (LAS) this behavior does not occur.  Using LAS is a permanent fix. 

https://docs.citrix.com/en-us/licensing/current-release/license-activation-service.html

If LAS is not an option the registry can be adjusted on the PVS Servers.

"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."

HKLM\software\citrix\provisioning services\LAS\entitlementinterval with a value of 7200

If 'LAS' does not exist create the key.

Key = LAS | DWORD = entitlementinterval | Value = 7200

Restart the Citrix Soapserver service.

This problem affects PVS version where License Activation Service (LAS) support has been initially added to the product.  After upgrading to one of these versions you will find that the Target Device presents liceinsing pop up messages to the end user that it is unlicensed and will enter grace period.