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Microsoft

Symptoms: 

when you deploy the first Managed Instance in a VNET another resource will be created to represent the "Virtual Cluster".

the VC will not expose you any functionality, but it cannot be removed, renamed, or moved to another resource group. 

what is you need to rename it in order to meet your policy for naming convention. 

 

Resolution:

Virtual Cluster is a resource used internally as infrastructure for the Managed instance

therefore it's managed by Azure and cannot be changed by customers as this time. 

there is no option to set it's name nor by ARM Template, PS, CLI  or any other method. 

 

The Resource Group where is will be created is always where the Virtual Network resides.

even if you choose to paste the Managed Instance itself on another Resource Group.