User Profile Disks not created – 2012R2 pooled VDI windows 7 VM

Servers-

• RD Web Access/Connection Broker – VMWare 2012R2 machine – VDW
• RD Virtualization Hosts – 2x physical servers – VD1/VD2

The User_Profile storage location is a replicated DFS on the F drive of VD1/VD2 called user_profiles. It is DFS replicated and namespaced (\domain\user_profiles), however due to VDI/DFS issues it is referenced to just one server as a normal shared drive in the VDI settings (\VD1\User_profiles). I have also tried setting this up on a non-DFS shared folder and get the same error.

Permissions for the folder are set to:

• Share permissions are R/W to VDW/VD1/VD2 and admin groups
• Security permissions are Full Control to VDW/VD1/VD2 and admin groups

The UVHD-template.vhdx is created and no errors are thrown. When logging into a new VM, no vhdx is created for the user profile disk and a few errors are logged:

VM Host Server:

• Warning: Remote Desktop Services has taken too long to load the user configuration from server \MSSG.domain for user adminuser (note not the user that logged in to the VM, but the user that is logged into the server itself. Happens everytime the VM is logged into though)
• Error: Driver HP Color LaserJet 4700 required for printer !!print2k.domain!PRINT2K-12518 is unknown. Contact the administrator to install the driver before you log in again.
  (a couple more of the same error for different printers)

VM:

• Warning: The client computer does not support RemoteFX. The connection will be made with the RDP Graphics. The relevant status code was 0x10a.
• Error: Windows has backed up this user profile. Windows will automatically try to use the backup profile the next time this user logs on.
• Error: Windows cannot find the local profile and is logging you on with a temporary profile. Changes you make to this profile will be lost when you log off.
  Warning:
  The client computer does not support RemoteFX. The connection will be made with the RDP Graphics. The relevant status code was 0x10a.

Any help is appreciated. We were looking forward to UPD, however after more research and working with it it's feeling like a nightmare. If we should be looking at an alternative solution please let me know.