Was required to manage clients in untrusted domain in a recent SCCM deployment and one of pilot machine (Windows 7) was not able to have the published app successfully installed, while the other got installed successfully.
Checking on the DataTransferService.log, it includes log saying “DAV request. HTTP code 401, status 'Unauthorized'”
Checked and verified that the network access account for SCCM has been configured and there’s no firewall restriction between the client and SCCM server.
Googled around and found out that KB2522623 might be able to fix the problem, and it really did once the patch was applied.