Windows user profile switch to Application Guard

Recently some of our endpoints (Windows 10, hybrid Azure AD Joined devices) after logging in to the user profile, after few minutes switches to Application Guard mode. The explorer side bar shows "Application Guard" instead of "This PC" and C drive shows the folders as shown below

I cant do anything else, and the quick fix is to login as  local admin and then from control panel, disable windows defender application guard but not sure what's causing it to stop it from happening.