NX.env in C:\ takes precedence over the one in SDM home folder (NX_ROOT).
The following error appears in NX_ROOT\log\stdlog file
WARNING: An NX.env file was found at C:/NX.env. Values entered here will override the values from the NX.env file in the NX_ROOT directory and may cause unexpected side-effects.
Side effects could include, but are not limited to, the inability to run the PDM_CONFIGURE process due to a JAVA error
CA Service Desk Manager 17.x
Supported Windows Operating Systems
This is expected behavior. To avoid this issue from occurring, remove the NX.env from the C:\ root directory so it takes the one located under the NX_ROOT folder.