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This behavior is resolved in Microsoft Application Virtualization (App-V) 4.6 SP1 Hotfix 4 (HF04). You can request this update by contacting Microsoft Support.
As a workaround, you can edit the OSD for affected applications to set the SXS_32_ENABLED tag to true. This has the side-effect of bypassing side-by-side assemblies located in the package itself and using only locally installed binaries. This may result in missing files unless the assemblies are installed on the client computer.
To change this setting, open the OSD file for the application and modify the policies section to include the SXS_32_ENABLED tag set to true (the default value is false). This should generally be avoided, as it necessitates that all side-by-side assemblies be installed locally on the machine. For example:
A Procmon will reveal entries like this where the volume name is prepended twice to the path:
4:05:26.2364763 PM notepad.exe 3264 CreateFile \Device\eedmk{3378b50c-cda0-11e0-b722-806e6f6e6963}\Device\eedmk{3378b50c-cda0-11e0-b722-806e6f6e6963}\Windows\System32\uxtheme.dll SUCCESS Desired Access: Generic Read, Disposition: Open, Options: Synchronous IO Non-Alert, Non-Directory File, Attributes: n/a, ShareMode: Read, Delete, AllocationSize: n/a, OpenResult: Opened
The presence of the 'double path' is diagnostic.
Keywords: kb, vkball