What occurs to a library item when a VM template in vCenter inventory is converted to a VM?

When a VM template in the vCenter inventory is converted to a VM, the corresponding library item is deleted. This process is part of how vSphere manages its resources. When you convert a template to a virtual machine, the template is no longer needed because the primary function of the template is to serve as a master image for deploying new VMs.

Once the conversion is completed, the original template is removed from the catalog, signifying that it is no longer available for further deployments. This cleanup helps to maintain an organized inventory by ensuring that only relevant items are present. In the context of vSphere, this mechanism prevents confusion or clutter in the library, where multiple instances of former templates might otherwise accumulate.

In contrast, other options like retaining and updating the library item or renaming it do not occur because once a template has been converted into an active VM, its role has changed fundamentally, nullifying the necessity for it as a library item. Duplicating the library item would also not apply in this context, as the system is designed to eliminate the old reference upon conversion rather than create additional instances.