For Azure Virtual Desktop (AVD), the modern and recommended solution for "roaming user profiles" is FSLogix Profile Containers.

Since the session hosts are hybrid-joined (managed by the on-premises Active Directory), FSLogix is deployed and configured using Group Policy Objects (GPOs). The core FSLogix settings, such as enabling profile containers and setting the VHDLocations path, are applied to the session host machines themselves. These are located in the Computer Configuration section of a GPO. This method minimizes administrative effort by applying the policy to the organizational unit (OU) containing the session host computers.

Folder Redirection is a separate Windows feature that is also managed via GPO. However, these settings apply to the user's context, not the computer's. Therefore, Folder Redirection is configured under the User Configuration section of a GPO.

Microsoft (Azure Documentation): Configure FSLogix profile container with Azure Files and Active Directory Domain Services.

Reference: In the "Create a Group Policy Object (GPO) and configure the FSLogix settings" section, the instructions explicitly state to navigate to: Computer Configuration > Policies > Administrative Templates > FSLogix > Profile Containers to enable the feature.

Microsoft (Windows Server Documentation): Deploy Folder Redirection with Offline Files.

Reference: In the "Configure Folder Redirection" section, Step 7 directs the administrator to: "In the console tree, go to User Configuration > Policies > Windows Settings > Folder Redirection."