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This could be an OS thing - if you're using Ubuntu, for instance, netplan may need to be configured to use system UUID instead of MAC address to aquire DHCP

I've seen this with duplicate machine ID's - make sure it's reset in your template. Ie https://github.com/David-VTUK/Rancher-Packer/blob/3ea8537510fc71a49ca96f1de7385e173268eaf4/vSphere/ubuntu_2204/script.sh#L13-L18

Thanks David for your help and I used the script in Ubuntu and then reconverted VM to Template. It works fine.