Windows App, pasting files hangs OS

Hi all,

We’re experiencing an intermittent but frustrating issue when using the Windows App to connect to our Azure Virtual Desktop environment.

Issue:
When users attempt to copy and paste certain files from their local machine to the remote session, the operating system on the remote side hangs. The mouse still moves, and the clock continues to tick, but:

-Start menu becomes unresponsive
-Taskbar icons stop registering clicks
-Desktop icons are frozen
-No error messages appear

This occurs sporadically and seems to affect files of varying sizes and types — 100KB up to 20MB.

What we've tried:

-Updating the Windows App to the latest version
-Verifying clipboard redirection is enabled
-Using MSTSC, and the Remote Desktop Store App. These work but don't support Session Pools, Remote -Apps, or SSO.
-Using RemoteDesktop_1.2.6228.0 (MSI Install) Has the same issue as Windows App

Environment:

-Remote app hosted in Azure Virtual Desktop (AVD)
-Users connecting from Windows 10/11 clients
-Windows App version: 2.0.419.0, 2.0.420.0, and 2.0.500.0

All ideas welcome - is a major disruption to our business processes.