What about having the user to download the app from the Apple App Store and activate the "Make Application MDM Managed if user installed".
This is just a workaround but at least you could confirm the app can install properly on user's device and still having your own settings/SDK Profiles to be applied on it.
That's a good idea and might work, however, we don't allow students to use personal Apple ID's to download anything from the App Store.
Do you have the same behavior when deploying the same app with same setup in Public Apps ?
Could be worth the shot to have this deployed, try installing on user's device, and see if removing the public app so that it is forced by the VPP app version stays on the device as I remember you told me you were having some issues with the public apps deployment.
Rethinking about this, can you confirm that the user's Apple ID defined store actually has the application you want to push ?
Idea would be to recreate the user's Apple ID on the same country where you have your VPP country token deployed.