Virtual Environment concept makes the virtual applications on the client to share the same file system and registry on client settings and share data among them. These Virtual Environments gets created on the clients whenever the virtual applications are installed/evaluated on the client side.
Assuming App-V5 Applications already created in the Site Server
Steps to create Virtual Environment:
1. Launch SCCM 2012 SP1 Admin Console
2. Click Software Library workspace and expand "Application management" and select "Virtual Environments" node
3. Click "Create Virtual Environment" in the Home tab to launch the dialog to create Virtual Environment
4. Enter the name, description of it
5. Here one can enter "OR" relationship or "AND" condition to create virtual environment.
6. When we click "Add", it will ask to add a "VE Group" . All the applications in a group are in OR Condition.
7. Once we add the applications, click Ok to add the Virtual Environment.
When we deploy the applications, Virtual Environment gets created on the client.
Troubleshooting logs on the client side: