An Azure service that runs native VMware workloads on Azure.
Hello @Donald Motsoai ,
Thanks for sharing the details this behavior is expected in the scenario you described.
Even though you changed the hostname and IP, the issue still occurs because when a VM is created from an OS disk snapshot, it is a byte-for-byte copy of the original system. This means the cloned VM retains the same internal machine identity, including the Security Identifier (SID) and other system-level identifiers.
Think of it this way:
- The hostname/IP is just the label
- The SID is the machine’s unique identity
So even after renaming, both machines still appear identical at a deeper level, which leads to conflicts—especially in domain or network environments.
To resolve this properly, the OS must be generalized using Sysprep before reuse.
Here is the recommended flow:
- Create a temporary VM from the snapshot
- This keeps your original VM unchanged.
- Confirm the VM boots normally.
- Run Sysprep on the temporary VM
Open an elevated Command Prompt and run:rd /s /q C:\Windows\Panther- This removes machine-specific identity (including SID).
- The VM will automatically shut down when complete.
- Do not restart it after Sysprep.
- Microsoft also recommends generalizing a VM before creating reusable images to remove machine-specific information.
- Convert the generalized disk to VMDK
- Create a new VM in VMware
- Ensure VMware generates a new MAC/UUID (do not reuse original IDs)
Validation
After deployment, you can confirm the identity is unique by running:
whoami /user
Compare the SID with the original VM — they should now be different.
Notes
- Always run Sysprep on a copy, not the production VM (the process is irreversible)
- Do not clone the following workloads using this method:
- Domain Controllers
- Failover clusters / SQL AlwaysOn nodes
These require dedicated deployment methods rather than disk cloning.
Changing hostname/IP alone doesn’t resolve the issue because the underlying system identity (SID) remains the same.
Running Sysprep (/generalize) on a copy of the VM ensures a new, unique identity and prevents these conflicts.
References
https://learn.microsoft.com/en-us/azure/virtual-machines/generalize
https://learn.microsoft.com/en-us/windows-hardware/manufacture/desktop/sysprep-command-line-options?view=windows-11
Thanks,
Manish.