App-V: Virtual Packages works in win 10 1607 but fails in windows 10 1703/1709

Many packages that completely worked in inbox App-V in windows 10 1607 failed after upgrading to windows 10 1703 and 1709 versions. The reason for failure is due to Microsoft changed the way to load registries in containers CREG instead of usual virtual registry VREG. To know about this change do have a look at the below articles from Tim Mangan.

http://www.tmurgent.com/TmBlog/?p=2692
http://www.tmurgent.com/TmBlog/?p=2733

There was a temporary fix which was available and Roy Essers posted it in twitter a long back.
It was adding the below registry entry manually in the 1703/1709 machines.

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\AppV\Client\Compatibility]
"RegistryCompatibilityMode"=dword:00000001

Microsoft has released an update earlier today which is supposed to fix this registry mapping issue.
https://support.microsoft.com/en-us/help/4074588


We can clearly see that they have made use of the temporary fix to change the registry virtualization to use the VREG instead of the modern CREG that was mentioned earlier to permanently fix this issue.



Apart from the registry fix, this update also fixes many other App-V issues which can bee seen below.




This update will be downloaded and installed automatically from Windows Update. If you would like to use the standalone package for this update, download it from the below link.


http://www.catalog.update.microsoft.com/Search.aspx?q=KB4074588

NOTE: This fix is supposed to be only for windows 10 1709. The article haven't mentioned anything about windows 10 1703. Will do a check in windows 10 1703/1709 and update how the fix has really helped to solve the issue.


Update: This issue is also fixed in windows 10 1703 with the new hotfix released.


https://support.microsoft.com/en-us/help/4077528