After upgrading to LAS, the error "The registration was refused due to 'NotLicensedForFeature'" appeared on the Delivery Group with license settings configured. Once the license setting was removed from the Delivery Group, launches resumed functioning as expected.

Applies only to CVAD sites migrated to LAS with Delivery Group license overrides or Multi type licensing.

Delivery Group overrides or Multi type licensing are not using the CVAD site level license allocated via LAS

Remove the Delivery Group Override and apply CVAD site-level licensing after migrating the site to LAS.

1. After LAS migration and activation, verify the site's license with: Get-ConfigSite | select ProductCode, LicensingModel. It should show CVAD Premium CCU.
2. Use GET-BrokerDesktopGroup -Name DG1 | select ProductCode, LicenseModel, or Get-BrokerDesktopGroup | select Name, ProductCode, LicenseModel to find which Delivery Groups had license overrides before LAS migration.
3. Remove the override for the Delivery Groups with: Set-BrokerDesktopGroup -Name DG1 -LicenseModel $null -ProductCode $null.
4. Confirm the Delivery Group is now using site-level licensing: GET-BrokerDesktopGroup -Name DG1 | select ProductCode, LicenseModel.

This article describes a licensing configuration issue that can occur in Citrix Virtual Apps and Desktops (CVAD) environments after migrating to the License Assignment Service (LAS). Sites that previously used Delivery Group–level license overrides or multi‑type licensing may encounter VDA registration failures. When misconfigured, VDAs may refuse to register and display a “NotLicensedForFeature” error until Delivery Group overrides are removed and site‑level licensing is restored.

SDK help: https://developer-docs.citrix.com/en-us/citrix-virtual-apps-desktops-sdk/