Clones not renaming within OS when cloning from a gold image

Products

• VMware vSphere ESXi

Issue/Introduction

Cloned Windows VM’s hostname is not being updated inside the guest OS after cloning from a “gold” (template) image. 

The following error is observed in the C:\windows\system32\sysprep\panther\setupact.log file within the guest OS:

SYSPRP BitLocker-Sysprep: BitLocker is on for the OS volume. Turn BitLocker off to run Sysprep.

Environment

VMware Cloud Foundation

VMware vCenter Server 8.0.x

Cause

BitLocker encryption on the source (gold) image blocks Sysprep from completing the computer‑name change. Sysprep requires the volume to be unencrypted; otherwise it aborts, leaving the VM with the original hostname.

Resolution

Disable bitlocker on the gold image and attempt guest customization again.

Additional Information

Other sysprep issues related to Windows 11 24H2

Microsoft Q&A discussing this issue: Windows 11 24H2 26100.1150 SysPrep /generalize breaks BitLocker functionality

Related Microsoft thread:  Windows 11 24H2 Triggering Recovery Mode after Sysprep