Just a quick update on this.
I moved the VM to a virtual network so I could assign a static internal IP address. Then I used "solution 2" to fix the problem and re-authorize the license; however, that still doesn't quite work.
What I am finding is that the MAC Address, UMN 2 and UMN3 all change when the machine is deallocated then re-allocated. These values are available from the ArcGIS Administrator on the Machine Identifiers page. So every day that I want to use desktop, I would have to go through this process
As a side note, I have another product that uses the MAC address for licensing and I was able to add a virtual MAC address by making some registry entries, but that virtual MAC address is not used in this license.