Changed the GPO setting above. Full path in the GPO is Computer Settings - Administrative Templates - PCOIP Session Variables - then either of the two options (I used the Overridable option) - Enable access to a vsphere session from a Vsphere Console) Now everything is working. Shame Vmware engineer didn't know this way would work when he was checking out why manually putting the same setting directly into the registry fails.
Oh well it works now, Just hope the final patch gives you the option to blank the Vsphere console if required.
