When we are trying to apply “Folder redirection” policy using “#homeDirectory#” attribute that is working. 
 
Behavior :
 
Folder redirection fails with the following error in XenApp Server or XenApp / XenDesktop VDA.
 
The Citrix Profile management Group Policy Extension could not redirect the folder “Folder name” for user 'Domain\Username'. 
 
Error code: '0x57': The parameter is incorrect. 
 
But if we specify the UNC path of “homeDirectory” in policy, that always works.  
 
Problem Cause :
 
This above behavior is “By Design”.

• We can use a relative path #homeDirectory# only to specify "UPM Store Location".
• We can only redirect "Document" to home directory by specifying "Redirect to the user’s home directory” policy. But we cannot use relative path "#homeDirectory#" to achieve the same.
• To redirect any other folder apart from Document, we need to specify the UNC path.