Dedicated Virtual Machine shuts down and remains powered off, even though Logoff behavior ShutdownDesktopsAfterUse is set to false.
The problem occurs after updating the master image of a Dedicated type catalog using the PowerShell SDK commands listed under CTX129205 – How to Update the Master Image for Dedicated and Pooled Machine Types using PowerShell SDK Console.
Changes applied to the master image of a Dedicated Catalog should only affect new machines created from the image and those changes does not apply to the existing machines in that catalog.
The problem occurs because the update process assigns the new updated image to all the Virtual Machines in the catalog, marking the existing ones with the ImageOutOfDate flag. Once the flag is enabled for the Virtual Machine, it shuts down after logging off with the attempt to start to the newly assigned image. At this point, the flag is always enabled since Dedicated machines cannot change to a different image.