WDAG Crashing with 0xc03a001a error code

Question

Just gonna try edge with "New Application Guard Windows" but it keeps saying this every time I try to launch it

I already have Virtualization turned on in UEFI settings, have Hyper-V installed too
My PC info:

OS: Windows 10 PRO V. 21H1 (OS Build 19043.1165)

Windows Updates: No Other Updates Available by the time I upload this question (20:56:54 UTC
Monday, 30 August 2021)

Motherboard: Gigabyte A320M-s2h (AMD Chipset Driver 3.08.17.735 Released 8/23/2021)

CPU: AMD Ryzen 5 1600

RAM: Micron 8ATF1G64AZ-2G6E1 (1x8GB DDR4)

GPU: MSI RX 460 4GB OC (GPU Driver is at newest 21.8.2)

Physical Drive:
-WDC WDS240G2G0B-00EPW0 (WD Green 240GB SSD used for Windows 10 OS and Page File)
-WDC WD10EZEX-00BN5A0 (WD Blue 1TB 7200RPM HDD)
-WDC WD10EURX-63UY4Y0 (WD Blue 1TB 5400RPM HDD)
-ST3500312CS (Seagate Pipeline 500GB 5900RPM HDD)

Already ask this on other ms forum but Moderator said I should post it here

Answer 1

0xc03a001a = Virtual hard disk files must be uncompressed and unencrypted and must not be sparse.

There are multiple drivers.
Are any in RAID? Compressed?

See if these links have useful information:
https://social.technet.microsoft.com/Forums/en-US/757c76ba-a772-4dde-8baa-4db6de1016ce/vhd-must-be-uncompressed-and-unencrypted?forum=winserverhyperv
https://github.com/microsoft/WSL/issues/4103

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Answer 2

As a trial and error step see if the compress / uncompress is a viable fix:

https://www.tenforums.com/tutorials/26340-compress-uncompress-files-folders-windows-10-a.html
https://www.tenforums.com/tutorials/22088-compress-uncompress-windows-10-compact-os.html

Restore points / backup images can be made:
https://www.tenforums.com/tutorials/4571-create-system-restore-point-windows-10-a.html
https://www.tenforums.com/tutorials/61026-backup-restore-macrium-reflect.html

Unnecessary files can be deleted:
https://www.jam-software.com/treesize_free
https://www.tenforums.com/tutorials/83441-free-up-drive-space-windows-10-a.html
https://support.microsoft.com/en-us/windows/free-up-drive-space-in-windows-85529ccb-c365-490d-b548-831022bc9b32

.
.
.
.
.
Please remember to vote and to mark the replies as answers if they help.

On the bottom of each post there is:

Propose as answer = answered the question

On the left side of each post: Vote = a helpful post
.
.
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