Scenario:

Users receive the following error message when attempting to launch an application virtualized by App-V:

The Application Virtualization Client could not launch APPLICATION_NAME”
This action cannot continue because the package must be upgraded. Shutdown all the application that are part of this package and try again.
 
Error code: xxxxxx-xxxxxx0a-00000124

This error can occur under one of the following conditions:

1. An application was left running during an App-V management server upgrade from a pre-4.5 version to 4.5 or later. During an App-V upgrade, the client will continue to operate in disconnected operations mode using cached authorizations. Susbsequent cached launches will resume in online mode post upgrade. It is at this point you may see the above error message.

2. A new version of the application is currently advertised via a ConfigMgr 2007 (SCCM) virtual advertisement that has not been downloaded/streamed yet.

In the case of #1 being the issue, rebooting the computer and/or restarting the App-V client service may clear up the problem.  If that does not work then running the following command should resolve the issue:

      SFTMIME UNLOAD APP:application

Unloading the application in the Client UI will also suffice.

In the case of #2 being the issue, verifying through configuration manager the status of the updated package advertisement is an important step. Bear in mind that if you are currently working on a Terminal Server/RDS Server running the App-V client managed by Config manager, any instances of the application currently launched and in use will need to be shut down first.

Check polling policies, CCM cache, maintenance window settings, etc. as well.

Also note that the error string differs from a similar error with the exact same code:

This application cannot be imported because it is in use.

Close all instances of this application and any others that use the same package, and then try again.

Error code: xxxxxx-xxxxxx0A-00000124