After upgrading the vCenter Server, the required variable for this functionality is not enabled by default. Further steps are required to completely resolve the issue on affected systems.
To completely resolve this issue after updating the vCenter Server, add the provisioning.relocate.enableRename advanced parameter to vCenter Server and set its value to true:
Note: The default value for provisioning.relocate.enableRename is false.
Note: The . nvram file does not get renamed when virtual machine is powered on during Storage vMotion. The oldname.nvram will remain.
For information regarding renaming the . nvram file, see Renaming a virtual machine and its files in VMware ESXi and ESX (1029513).