When creating an application layer, the primary goal is to capture only the changes made by the application's installation in a clean, isolated environment. Disabling Windows and application updates (A) is critical to prevent unintended changes from being captured in the layer, which could cause conflicts or instability. Similarly, installing applications from a network share or a mounted ISO (B) is a best practice. This prevents the installer files and any temporary extraction files from being captured on the local C: drive, ensuring the final layer contains only the installed application components and not the setup media itself.

C. Citrix App Layering fully supports applications with prerequisites. The prerequisites can either be included in the same application layer or, more commonly, placed in a separate layer.

D. Hypervisor tools are specific to the virtualization platform and are installed in the Platform Layer, not in an Application Layer, to ensure proper integration with the target environment.

E. Cross-talk between application layers is a fundamental feature. The App Layering compositing engine merges layers, allowing applications in different layers to interact as if they were installed on the same system.

1. Citrix App Layering Product Documentation, "Create an app layer": In the "Before you start" section, the documentation explicitly states, "On the OS layer that you use for the packaging machine, disable any antivirus software and Windows Updates that might run automatically during the process." This supports option A.

2. Citrix App Layering Product Documentation, "Create an app layer": In the "Install the application on the Packaging Machine" section, it advises, "Copy the application installer files to a network file share that the Packaging Machine can access, or create an ISO file and upload it to a datastore that the Packaging Machine can access." This supports option B.

3. Citrix App Layering Product Documentation, "Layers": The documentation defines the Platform Layer as the location for "provisioning software, connection broker tools, and hypervisor tools." This refutes the claim in option D that hypervisor tools are installed in an application layer.

4. Citrix App Layering Product Documentation, "How it works": This section explains the file system and registry virtualization process, where layers are merged into a single composite view. This process is what enables "cross-talk," directly contradicting option E.

5. Citrix App Layering Product Documentation, "Create an app layer": The documentation provides guidance on prerequisites: "If an application requires another application to be installed, install the prerequisite application in its own layer first." This confirms that applications with prerequisites are supported, refuting option C.