I saw the exact same thing but we already had a few applications that needed to be packaged as a domain account so we just have to make sure to use an account that doesn't have any assignments and we are good to go. And just so you know, Appstacks DO NOT contain any profile information. It doesn't contain any user related settings or files for that matter. All and everything that is created in c:\Users or HKCU is not being stored in the Appstack. For as far as I'm concerned looking at it as a packager this is good news. You get clean application installations. Only downside is that you still have those occasional developing idiots that store the application in the %APPDATA% "because a user has permissions there"..

Thank you for the clarification.

My co-worker tried capturing apps yesterday as the local Administrator account and confirmed that it still works, despite the 500 error message that comes up.  so I think we are good to go.

I also had a ticket open with VMware on this issue and they said engineering is looking at reverting the agent back to the old behavior of allowing the local accounts to log in without the error.

thanks!