What is "virtualapp/didlogical"?

credentials

There are quite a few threads on answers.microsoft.com where Microsoft engineers confirm that this is indeed a credential created by Microsoft products:

Unknown generic credentials in windows 7 - virtualapp/didlogical
A Microsoft employee called Divya R says:

Virtualapp/Didlogical is a credential that is stored when you use any of the Windows Live products, this can include Windows Live Messenger, Windows Live Mail, Windows Live Sign-In Assisstant, Windows XP Mode and other Microsoft services.

You may delete the entry from the Credential Manager.

how did virtualapp/didlogical arrive in my windows 8 generic credentials on my desktop computer and does it affect internet access?
A Microsoft employee called Tadasha Mishra says:

The entry Virtualapp/Didlogical is a credential that is created when you use any of the Windows Live applications and other Microsoft services.

Under Generic Credentials I am getting VIRTUALAPP/DIDLOGICAL (but in lower case letters) I delete but it returns later. How do, I get rid of it permanantly?
A Microsoft employee called Winston M says:

Virtualapp/Didlogical is a credential that is stored when you use any of the Windows Live products, this can include Windows Live Messenger, Windows Live Mail, Windows Live Sign-In Assisstant, Windows XP Mode and other Microsoft services.

You may delete the entry from the Credential Manager.

There are also cases where Microsoft products malfunctioned because this credential was incorrect.

For example, in OneNote 2010 not syncing with SkyDrive Fix :

Since the recent IE fix I’ve had an issue with OneNote 2010 not syncing with OneDrive (formally SkyDrive). It would say I needed a password to connect and when I would try to sign in it would come back with: “We can’t sign you in because the network isn’t available. Make sure your computer is connected to the Internet and try again.”

Since the failure occurred when trying to sign into Windows Live, decided it might be an issue with the Windows Live ID credential store by Windows – turns out I was right. By deleting the stored credentials I was able to get OneNote syncing again.

A good summary of this subject can be found in the article What is Virtualapp/Didlogical? :

Virtualapp/Didlogical is a credential that is stored when you use any of the Windows Live products, this can include Windows Live Messenger, Windows Live Mail, Windows Live Sign-In Assisstant, Windows XP Mode and other Microsoft services.

In general it is safe to delete it – however, it’s pretty useless to remove it IF you are using Windows Live or any other Microsoft services on a regular basis. I would therefore not recommend to delete it.

If you continue to use the Microsoft Windows Live products, you will always have this entry. The only solutions is to uninstall Windows Live products and look for alternatives, but since this is not a security problem there is absolutely no reason to do that.

According to someone at Channel9: