Fiddler cannot work with Application Guard because of a small incompatibility.
The Microsoft FAQ about Application Guard has this section:
How do I configure Microsoft Defender Application Guard to work
with my network proxy (IP-Literal
Addresses)?
Microsoft Defender Application Guard requires proxies to have a
symbolic name, not just an IP address. IP-Literal proxy settings such
as 192.168.1.4:81
can be annotated as itproxy:81
or using a record
such as P19216810010
for a proxy with an IP address of
192.168.100.10
. This applies to Windows 10 Enterprise edition 1709
or higher. These would be for the proxy policies under Network
Isolation in Group Policy or Intune.
If you start Fiddler and go to Settings > Network & Internet > Proxy,
you will see under "Manual proxy setup" that:
- The setting "Use a proxy server" has turned itself to On
- Address has become
http=127.0.0.1:8888;https=127.0.0.1:8888
The problem here is that Application Guard does not accept such a URL,
as it requires the proxy to be identified by name and not by IP address.
If you now try to change that URL to https=localhost:8888
so as to give it
a name, and then click the Save button, Fiddler will immediately turn
Capture to Off, and will put up a large notice in yellow saying:
"The system proxy was changed. Click to reenable capturing".
And if you click the yellow header ... the proxy's URL in Settings
returns to http=127.0.0.1:8888;https=127.0.0.1:8888
(!).
As far as I can see, the situation is unsolvable: The two applications are
mutually incompatible. This might perhaps be by design.