I have set android:installLocation to "internalOnly" in my (paid) Android Application. The apk itself installs to /data/app (as it should), however Google Play on Android 4.1.1 installs the app to /mnt/asec.
This causes major problems for my app, as it is primarily an Android service. As the service cache is generated before /mnt/asec is mounted, it cannot find my service and removes it and all associated accounts including their data.
I don't think the output of adb bugreport is relevant to this issue, as it is caused by the Play Store, not my phone. I'll be happy to provide it on request though.
Relevant discussion in my own bugtracker: https://redmine.limun.org/issues/153
http://code.google.com/p/android/issues/detail?id=34880