I believe there is no room for improvement in Microsoft App-V since it is officially at the end of life. Microsoft does not negotiate extensions for their end-of-life solutions. It has been a great tool over the years, but the company has managed to write most applications to bring them up to date, many written from scratch or as web-based applications. It's highly likely that we will decommission the Microsoft App-V solutions next year, keeping backups for a period until the new applications stabilize. I'm confident that once they transition to newer versions, they will phase out Microsoft App-V just like they do with operating systems. When Microsoft decides to close a version, such as Windows 10-22H2 or 21-H2, it happens. Paying for extended support is costly and, in the end, not worth it. Organizations must think of alternatives, possibly leaning towards MSIX, although MSIX doesn't support very old software used on Windows XP or 2000, which raises doubts about what can truly be improved. It's clear they won't introduce anything new; they will only provide security patches as they approach the end-of-life timeline.
