Thank you again for following up, @Jaime Ben David !
I'm glad that you were able to resolve your issue and thank you for posting your solution so that others experiencing the same thing can easily reference this! Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others ", I'll repost your solution in case you'd like to "Accept " the answer.
Issue:
I am migrating to Azure, and users will connect to the environment using Azure Virtual Desktop. One of the apps need access to a c:\temp folder. This folder should be different for each user.
Solution (provided by Jaime Ben David):
In my case it has to be c:\temp because of a legacy app. So, i'll build a gpo that creates a temp folder for the user profile if it doesn't exist ( i.e c:\users<username>\temp) then build a symbolic link named c:\temp to point to that user's temp folder.
If you have any other questions or are still running into more issues, please let me know. Thank you again for your time and patience throughout this issue.
Please remember to "Accept Answer" if any answer/reply helped, so that others in the community facing similar issues can easily find the solution.