Cloned Windows VM’s hostname is not being updated inside the guest OS after cloning from a “gold” (template) image.
VMware Cloud Foundation
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.
in the setupact.log in c:\windows\system32\sysprep\panther\ directory inside the guest OS
SYSPRP Bitlock-Sysprep: BitLocker is on for the OS volume. Turn Bitlocker off to run Sysprep
Disable bitlocker on the gold image and attempt guest customization again.
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