Why does my App-V Package not run on a Windows 7/ Server 2008 R2 machine and why is it not inventoried by ConfigMgr 2012?

I’m trying to run a Microsoft Application Virtualization (App-V), application package on a Client running Windows 7. When I try to run the application it doesn’t run nor does ConfigMgr inventory it.

I also see the same behaviour on Windows Server 2008 R2.

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