Creating a template from a running VM results in the template showing suspended
VMware Cloud Director 10.3
VMware Cloud Director 10.4
This is caused when the vApps are added to the catalog from a vApp that is in a running state as per
"You can add standalone VM to a catalog even if the VM is in a running state. However, if you select a running VM, it is added to the catalog as a vApp template, and the VM is in a suspended state."
This behavior happens by design, continue with deploying the vApp
Alternatively clone the template from a powered off source machine