This is an annoying issue that occurs in an inconsistent manner. Fortunately the fix is easy.
The fix involves deleting some keys from the registry.
Run regedit (Start>Run>type regedit in the open box and click OK)
Delete the subkeys HardwareID and Store
Try this Citrix connection again. This time it should pass Negotiating Capabilities and work.
You might also want to change the permissions on the MSLicensing key. Users and Power Users should have Full Control permissions to it and all subkeys.
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