Hello,
If you have used a "Block Login" as an exception result on app volume during the disk creation you would generally see this issue. Also this block login option only available for writable volume.
For new volumes: https://docs.vmware.com/en/VMware-App-Volumes/2.18/App-Volumes-Admin-Guide-218.pdf [ Page Number: 68 / Exception Result ]
For existing volumes click edit on the disk and select Exception result as "Disable Virtualization and Alert User"
