MED-V 1.0 SP1: “No MED-V Workspace is defined” error post upgrade to SP1

I have been continuing to point out little nuances that occur when upgrading MED-V 1.0 RTM clients to SP1. These are usually few and far between. One particular client issue you may run into deals with immediate workspace use post-upgrade. After upgrading from MED-V 1.0 to MED-V 1.0 SP1 using the client upgrade installation (.MSP file) you may get the following error after upgrade:

“No MED-V Workspace is Defined” or “No MED-V Workspace has been defined for the current user.”

This is a known issue with the upgrade. The only option for mitigation is to either reboot the host workstation or close the MED-V client by completely logging out of Windows and logging back on and restarting the client.