I wanted to share what I have learned testing with Server 2019.
For background this is Citrix XenApp environment build with App Layering.
When testing the preview version of FSLogix 2.9.8716.30241 without my Office 365 layer everything worked great, old and new profiles opened New Teams without issue. Once I added the O365 layer I would consistently get the 'Failure to instantiate' event for all profiles (new and old).
I have gotten different results with the new GA FSLogix version 2.9.8784.63912 on Server 2019. New profiles work without issue. Old profiles get the 'Failure to instantiate' event. Once an old profile gets that error, all profiles also fail to open Teams.
This is a non-persistent App Layered environment and a restart appears to clear something that allows new profiles to work again as well as other previously existing profiles that never experienced the error. Any profile that previously experienced the 'Failure to instantiate' event will not work, even after the restart.