App-V applications cannot be streamed from a distribution point if Bypass proxy server for local addresses is set

This article provides a solution for the issue that a Microsoft Application Virtualization (App-V) application cannot be streamed from a distribution point in Microsoft System Center 2012 Configuration Manager.

Original product version:   Microsoft System Center 2012 Configuration Manager, Microsoft Application Virtualization for Windows Desktops, Microsoft Application Virtualization for Remote Desktop Services
Original KB number:   2683908

Symptoms

Consider this scenario:

• You have a domain that is named contoso.com.
• You have a Background Intelligent Transfer Service (BITS)-enabled Microsoft System Center 2012 Configuration Manager distribution point that is named myserver.contoso.com.
• The client computer has the Bypass proxy server for local addresses option set.
• You create a Microsoft 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.

Cause

This problem occurs because Windows doesn't 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, see Intranet site is identified as an Internet site when you use an FQDN or an IP address.

Resolution

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 myserver.contoso.com.