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I actually ran into this issue myself.
This occurred after we upgraded our Instant Clone VDI image from Windows 10 1809 to 1909.
We made sure to use the latest versions of Horizon Agent 7.12, DEM 9.11 and App Volumes 2.18.4 (haven't moved to 4.xx yet)
I couldn't figure out why USB redirection was working on my login but almost never on most other users.
I had to rollback to the 1809 instant clone image and then it worked fine.
I tried downgrading the Horizon Agent and DEM on the 1909 image, but still kept getting the "[ws_vhub] vhublib: Check [UemState]->[DONE] timeout" in the logs.
It finally clicked when I realized I didn't have a writable volume (I purposefully disabled mine a while ago). When we disabled the writable on another user, USB redirection worked again on the 1909 image.
Also, when deleting the writable and letting it be recreated, USB redirection worked again as well on the 1909 image...
So, apparently upgrading Windows 10 versions without nuking your writable volumes will also cause USB redirection to fail.
We worked around this, for now, by setting the UemFlags key to 257 decimal in the registry. (Placed in "HKLM\Software\VMware, Inc.\VMware VDM\Agent\USB" through a GPO)
Hope there comes a real fix for this issue in the future instead of disabling Horizon Smart Policies. (We didn't use them anyway.)