Redirecting Profiles
You can redirect the entire location of user profiles or redirect the location of the Desktop, My Documents, etc., using either of these options or a combination of them.
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Domain or Local Policies: redirect user folders from My Documents or Desktop to a network CIFS server or to the persistent drive. You can also set the location where a complete user profile will be created.
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User State Migration: with this tool you can keep user data. It's more complex to configure with XML files, as also allows you to migrate other non-user data in local folders it can be used in a complementary way. It is treated in the next chapter.
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Profile management software: instead of creating a local profile, this type of software allows full redirection to a network location or to the Host Provisioning persistent drive. An option -at no additional cost (see licensing and terms of use)- is Microsoft's FSLogix, this software takes care of creating a .VHDx file for each user profile and is compatible with Office and all versions of Windows.
You can easily configure FSLogix to create user profiles in a folder in the persistent drive, e.g. N:\Containers, all the user configuration will be kept after an update. Check FSLogix documentation for more details of how to configure the program.
Make sure to have enough space in the persistent drive to store profiles, you may need to schedule deleting profiles not used in a specific time or limit the maximum size a profile can grow.