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App-V applications cannot be streamed from a Configuration Manager Distribution Point if the "Bypass proxy server for local addresses" option is set

Consider the following scenario:
  • You have a domain that is named
  • You have a Background Intelligent Transfer Service (BITS)-enabled System Center 2012 Configuration Manager Distribution Point (DP) that is named
  • The client computer has the Bypass proxy server for local addresses option set.
  • You create a Microsoft Application Virtualization (App-V) application and then configure the application to use streaming as the distribution option.
  • You deploy the application, shortcuts are created, and the application is started. 

In this scenario, the application cannot be streamed from the distribution point.
This problem occurs because Windows does not consider computer names that contain a period (.) to be local. This behavior is by design. Because of this behavior, the client tries to access the distribution point through the proxy server. 

For more information, click the following article number to view the article in the Microsoft Knowledge Base:
303650 Intranet site is identified as an Internet site when you use an FQDN or an IP address
To resolve this problem, add the Fully Qualified Domain Name (FQDN) of the distribution point to the Do not use proxy server for addresses beginning with list on the client or to the Local Address Table (LAT) on the proxy server. In the sample scenario in the "Symptoms" section, you would add the following:

Article ID: 2683908 - Last Review: 07/09/2012 21:05:00 - Revision: 2.0

  • Microsoft System Center 2012 Configuration Manager
  • Microsoft Application Virtualization for Windows Desktops
  • Microsoft Application Virtualization for Terminal Services
  • kbtshoot kbprb kbexpertiseinter kbsurveynew KB2683908
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