When creating a virtual machine from template you may accidentally create whitespace in the virtual machine name. This can occur from Cloud Director 10.6.0 to 10.6.1.1. This will lead to an error if the name is not changed during future edits of the virtual machine.
VMware Cloud Director 10.6.0
VMware Cloud Director 10.6.0.1
VMware Cloud Director 10.6.1
VMware Cloud Director 10.6.1.1
This is a known issue.
Remove the whitespace when editing the virtual machine.
This will be preventable in the next major patch release for Cloud Director.