So it does not look like the registry key you are modifying is actually used. I do not know your virtualization system. So I cannot advise. Please talk to your system administrator.

Hello Martin, For instance, We have changed the WinSCP interface 0 to 1 in registry and checked the application and it doesn't reflect into the application still its pointing to Commander interface instead of Explorer interface.
We have attached the registry settings as well for your reference.

I look forward to hear from you

@Guest: Did you verify that your WinSCP is really reading the settings from that "AppV" registry path? Does it reflect any other settings you change there? For instance try setting Interface to 1. Will it change WinSCP interface to "Explorer"?

We tried to update the settings as mentioned here https://winscp.net/eng/docs/rawconfig#honordrivepolicy for local directories. still no luck,
Local directories are not connected in WinSCP left panel.
Please see the attached for the settings

But I do not see the C: drive in the left/tree panel of your Windows File Explorer either. So how did you get to the drive? Didn't you have to type the drive name on the address bar? Isn't your C: drive hidden in the Windows File Explorer? If it is, WinSCP follows that settings and do not show it either. If you want override that, see:
https://winscp.net/eng/docs/rawconfig#honordrivepolicy

Please see the attachment as, local drive is not connected on WinSCP left panel.

I didn't ask about installing WinSCP. I'm asking what the "https://remot..." window on your first screenshot is about? It looks like some kind of RDP connection. Is the Windows Explorer screenshot from the the same "RDP" connection? Or is it a local Explorer? Can you post a screenshots of WinSCP and Explorer side-by-side from same the environment?

We have installed WinSCP application and accessing from a desktop shortcut, not from a browser. we could access C drive using file explorer as I attached the image.

You didn't answer any of my questions.

We have tried switch back to the Commander interface in preferences already.
Ran as administrator.

See also https://winscp.net/eng/docs/faq_local_folders

Can you give us more info about your environment? How are you running WinSCP? Is seems that you are connected to some remote system from within your web browser? Can you access the C: drive anyhow? Using Windows File Explorer? Show us a screenshot of that. Your WinSCP screenshot actually does not even show any attempt to access the C: drive. Is the C: drive missing from the drive drop down?

We are using WinSCP version 5.7.4.5553. We were unable to access local directory. We tried changing user interface in commander option. Still its not showing.
Please see the attached