Issue is not related to the "wait for printers to be created (server desktop)" policy setting.
This is a client side issue fixed by a private fix applied to CWA Windows . The fix will be incorporated in a forthcoming CR and LTSR release CWA Windows .
Contact Citrix Support for a private fix for this issue . Reference CVADHELP-28337
On logon the VDA attempts to redirect both online/offline printers.
As a result "Waiting for printer connection" popup appears on the screen for the first few minutes after logging in.
If the popup message is cancelled it can reappear again .
After a few mins the message disappears completely..