When creating a new VM of the same name with another VM in vCenter, you may encounter an error message stating "A virtual machine, template, or vApp with the same name exists in the selected location. Enter a new name."
Sometimes you may not encounter this message and create this VM successfully.
vCenter 7.0
vCenter 8.0
VMs are allowed to have same name across folders, but no duplicates in the same folder/parent container. This function is designed to manage VMs of different usage/type using directory structure.
This is normal. Optimize your directory structure if this is unwanted.