When creating a VM from a Windows Server 2025 template using the "Customize the OS" option during deployment, the newly deployed VM inherits the same IP address as the template VM, causing IP conflicts or APIPA addressing.
VMware vSphere
The VM template was not fully generalized or properly prepared for cloning and customization. Specifically:
Sysprep generalization is the Microsoft-supported method to prepare Windows images for cloning and deployment, preventing IP and SID duplication.