It may be required to use short names instead of discovered FQDNs. There is 'Strip suffix' option in discovery properties but it doesn't always work as might be expected. There is also Device Name Format which may override. 'Strip suffix' is not applicable if name format is 'Host name plus domain name and add Hostname as alias'.

More details can be found at https://docs.device42.com/auto-discovery/windows-and-hyper-v-auto-discovery/, Device naming & duplicate device prevention.