To resolve this issue, increase the DatabaseCommandTimeout value by performing the following steps:
1. Navigate to the following directory:
%systemdrive%\Program Files\Microsoft Application Virtualization Server\ManagementService
2. Open the Web.config file using Notepad and increase the following value:
<add key="DatabaseCommandTimeout" value="30"/> <!-- in second, 30 is system default value -->
3. Attempt to add the package again using the Management Server. If the import operation fails, continue to increase the DatabaseCommandTimeout value until the operation succeeds.