AVD SignIn Sign Out taking too long - FSLogix AppServices Error

While implementing AVD solution in customer environment the sign-out operation was taking too long. Because the sign-out was not graceful and subsequent sign-in operation for the same user was not happening and the black screen was getting hung up with the "Please wait for FSLogix AppServices" message as shown in the screenshot below. There was a delay in user’s sign-in and sign-out to session host and FSLogix profiles were not loaded & Inactive for few users.

In this subscription and AD tenant environment FSLogix cloud cache was implemented for all users accessing AVD and conditional access policies with MFA were heavily applied at tenant level.

Resolution: As per the Microsoft Document, Microsoft Entra Kerberos doesn't support using MFA & CA Policy to access Azure file shares configured with Microsoft Entra Kerberos.

In the conditional access policy of the customer environment "All Cloud Apps" were included in the MFA policy. The MFA policy was getting applied on all cloud application including the storage account. Storage account was being treated as a cloud app. 

Storage account must be excluded from all cloud apps in the Conditional Access Policy.

Ref Link : Microsoft Entra Kerberos for hybrid identities on Azure Files | Microsoft Learn

Modify the conditional access policy as shown below for excluding Storage Account and Azure windows VM Sign-In

The black screen issue was resolved as soon as the above mentioned changes were made. There was no problem with FSLogix version or registry settings. All other configurations were fine.