Customers are not able to use their YubiKeys in any non-browser based applications using the FIDO2 redirection feature, but they are able to use their YubiKeys to Authenticate in Web Based Applications running in Chrome/Edge or Firefox.
When they click on these application they are repeatedly prompted to insert their YubiKey even if it is already inserted.

This issue occurs even when the Virtual Channel Allow List is Disabled.
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 Application's executables was not entered using the list of WebAuthN Allowed Processes and/or the CtxWebAuthNHook was not present.
Please follow: Advanced Configuration for MsEdgeWebView2 Based Applications https://docs.citrix.com/en-us/citrix-virtual-apps-desktops/2402-ltsr/secure/fido2.html#advanced-configuration-for-msedgewebview2exe-based-applications
Please follow: Advanced Configuration for Custom Applications: https://docs.citrix.com/en-us/citrix-virtual-apps-desktops/secure/fido2/advanced-configuration
Customers are not able to use their YubiKeys in any non-browser based applications using the FIDO2 redirection feature, but they are able to use their YubiKeys to Authenticate in Web Based Applications running in Chrome/Edge or Firefox.