Why does Teams keep asking to restart on AVD?

Check which optimization Teams is using before and after the restart. It can start with the older WebRTC-based optimization, detect the client plugin in the background, then switch to SlimCore on the next launch. A single restart during that transition is expected.

With hosts rebuilt daily, that transition may be happening again on fresh hosts. That is a plausible explanation for the repeated prompt, not proof that the image or Teams installation is broken. I don't see a confirmed way here to skip the prompt while keeping SlimCore enabled.

For now, the practical workaround is to tell users to restart Teams when prompted. If it switches to SlimCore and stays there for the rest of the session, that's different from a restart loop that never resolves.

Not a great answer when it generates tickets every day, but it gives the help desk something specific to check rather than treating every prompt as a failed installation.

If Teams keeps prompting even after the app restart, I'd investigate that separately. Record the optimization shown before and after restarting, whether the host was freshly reimaged, and whether the client has the SlimCore plugin. Those details should help distinguish the expected transition from a failed switch.

Keep an eye on whether Teams is actually prompting or closing unexpectedly. A crash followed by SlimCore being active after reopening can look related, but it's a different symptom and may need its own investigation.