Apply the below registry changes on the VDI:
HKCUsoftwaremicrosoft to enable its inheritance (right click -> permissions -> advanced, click ‘Enable inheritance’, click ‘Apply’ and ‘OK’)
This setting have been identified to fix the Office 365 shared licensing activation.
The code fix has already added to LTSR 1912 CU1 & CU2 and later current releases. The issue only exists for profiles that are created by 1912 RTM UPM.
So if we logon a brand new account, there should be no issue for 1912 CU2.
For existing users whose profiles were created using 1912 RTM, we should delete both local profile and userstore profile for problematic accounts and logon again (then those account would be like brand new accounts without profiles) , which will also resolve the issue.