Yes, interesting.

The variable on that branch is called DFPath but does have the period as the first path

The variable in the Workspaces branch is called SystemDFpath and also contains the period as the first path

Un-tested but I'm guessing if the runtime uses SystemDFpath to find the licence and the application is being run from a UNC share then the first place it might look is the local PC's Windows directory (based on what I found earlier) and if that happens to have a dfr in it, it would try to use that rather than something later on in the list of paths