What is the best practice around App Volumes provisioning machine? Should the machine be on domain or in a workgroup?
The provisioning virtual machine usually joins the same domain as the production virtual machine. However, this is dependent on the applications that are being provisioned. Some application requirements and licensing models require that the virtual machine shares a common SID with the production virtual machine.
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it must be in domain , because when you provision Appstack you need to map it to VM(capture VM) , you would search with DNS name and if it not in domain you will not find it , so in order to proceed you will have to join it to domain
Not true, you can enable the "Allow non-domain joined entities" option in your managers. When you install the AppVolumes agent on the non-domain system and enter the manager address it will register as a machine in your AV database and be available for AppStack provisioning and assignments. Here is the KB: VMware Knowledge Base