App Volumes – “Unable to contact App Volumes Manager” after the November 2026 Windows update

After the November 2026 cumulative update (KB5132061), App Volumes users get "Connection Error – Unable to contact App Volumes Manager. Virtualization is disabled." The cause is Microsoft's new NTLM signing behaviour (KB5135557). Here is where the error shows up in the logs, what I ruled out, the workarounds and the fix.