New-VM
to deploy a new virtual machine from this template
# New-VM -Name testVM1 -ResourcePool <target_resourcepool_or_cluster> -Datastore <target_datastore> -ContentLibraryItem <source_vm_name>
vSphere 7.x
vSphere 8.x
This is a known behavior, which was meant to prevent naming collisions with existing virtual machine.
It does not cause any technical problems.
VMware does not guarantee any strict naming conventions for virtual disks in vSphere, so please align your work flows accordingly.