I would focus on the GPO rather than redirection.
Probably most of the issue will be that the App-V client is being restricted. The App-V client runs under the local system account, and as such should be trusted. The GPO should not be restricting the local system from writing to places such as (not an inclusive list):
I work in an education environment which basically calls for a restricted desktop for pupils. Via Group Policy, they are not allowed to save to the desktop or right click on it either. There may be other settings in the GPO that I am not aware of. The problem is that without the GPO in place, App-V 5 works well and delivers folders and shortcuts to the desktop as expected. When it is applied, nothing appears on the desktop and the computer appears to be working overtime. I'm guessing this is the App-V client repeatedly trying to publish the shortcuts, but failing because of the GPO. I have considered Folder Redirection, but I am trying to deliver a standard desktop to all the schools I look after. Using computer membership of Security Groups in AD, I am able to deliver licensed applications to desktops where required. I don't think this would be possible using Folder Redirection, without using a sub-folder for each school. BTW, there are nearly 100 schools and nurseries to manage. Can anyone suggest a change to the GPO or a different way to try and deliver this standard desktop?