Need to enable HDX 3D Pro on Server VDA.

Policy setting for 'Optimise for 3D Graphics Workload' is enabled -
VeryHighDef Policy Template applied. - https://docs.citrix.com/en-us/citrix-daas/policies/policies-templates.html
HDX Graphic Status Indicator on Published Desktops States 'HDX 3D Pro: Disabled' - HDX Monitor does not show HDX 3D Pro is enabled.
 

Instructions

• HDX 3D Pro policy should not be enabled in server OS use cases.
• The better option is to to use video codec when preferred -https://docs.citrix.com/en-us/citrix-virtual-apps-desktops/2203-ltsr/policies/reference/ica-policy-settings/graphics-policy-settings.html#use-video-codec-for-compression

• HDX 3D Pro is only for specific use cases, in most cases we recommend our default which is to use vide codec. With our default ( for actively changing regions) you will also use hardware encoding when you play a video, but only for that region.