I am sure I'm not the only one who has struggled with this but apparently the Win10 EVD multi-session images in Azure don't have the codecs for HEIF files (.heic images and .hevc videos). Needless to say, we have been bouncing around trying to find a "good" app to open these files on AVD session hosts which is frustrating because on a desktop its already included and installed and works just fine.
I also have a different and separate frustration with dealing with AppxPackages (UWP apps). Needless to say, I recently spent quite a few hours digging into WHY the codecs are not there (or go missing randomly) and what to do other than trying to use the 99 cent extension from the Windows App Store.
The same "HEVC Video Extensions" are available in the Microsoft Volume License portal (which has moved to the M365 Admin portal). It is an ISO you can download that contains the installer for the extension. After installing it and ensuring the other FREE extensions from the Windows App Store (HEIFImage, AV1Video, WebMedia, and maybe one other) are installed the Windows Photo app opened the .heic files right away on my session hosts.
The name of the ISO in the volume license downoads is: SW_DVD5_HEVC_Codec_64BIT_MultiLang_-11_MLF_X23-60420.ISO
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