Profile Container DFS Setup - App doesn't find VHD Profile

I see nobody ever addressed this but I can tell you I see this exact same behavior in January 2025 with 2.9.8884.27471.  The funny thing is had this working in one datacenter and it was flawless.  For various reasons I needed to move the VDI environment that was using it to another datacenter and in that one, same domain and same DFS namespace, FSLogix will behave exactly as you describe....i.e. it reports that it can't find the VHDX, so it will create a new one, and then fails to create the new one because it CAN see that there's an existing one.

If I address the folder target directly, it works just fine.   If I set up a procmon on the host, it never sees the call out to the DFS until it tries to create the disk.  I'm just dropping the DFS for now but it's weird that it won't work.