M-Files Desktop installation on Terminalserver

The following docs provide information on using M-Files with virtualization and remote desktop technologies:

• Using M-Files with Citrix XenApp or Microsoft RDS.pdf
• Enabling Shared Client Cache for M-Files in Environments Similar to Citrix XenApp.pdf

Is it absolutely necessary to set the value of CitrixShellProcessName to rdpshell.exe for M-Files Desktop to function correctly in an RDS environment? What specific issues could arise if this setting is not applied? Are there scenarios where M-Files Desktop operates reliably without this adjustment?

I don't know what would happen or if it would work at all. Typically there's a reason for the documented configuration so you should follow the instructions.