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I have seen an issue happen several times now where our naming convention is not being applied during the OOBE when users are going through autopilot, is this indicative of something going wrong during the autopilot process? When looking at the device after it shows in intune everything else looks correct on the device.
Joe_Lurie
Microsoft
MicrosoftThomas_Shirley The naming template only works for Entra joined (Azure AD joined) devices, not hybrid joined. Assuming the devices are Entra joined, since the Autopilot profile allows you to configure a template, I'd expect the name to work, unless you were using a %% that it doesn't understand. You should only use %RAND% or %SERIAL%. If you're using something like %MACADDRESS% (I know you aren't using that specifically) then it won't work.
If you are hybrid joining the device, there could be other issues with the naming. Alternatively, you can use a PowerShell script to set the name during OOBE.