I just got a reply back from support that it is using the local OS windows fully qualified name, it is not a configuration field.

Going to leave this post up so I can find it one day in the future though. Sure it will come up again.

The reason it matters is that the software will use this name to find the DS server even if you enter another name or the IP of the server on install when it asks you where the DS server is, so if that domain name stops responding for whatever reason (in this case a network change) then the product becomes unlicensed even after a re-install and successful re-license. You must find a way to resolve the name in the lf.licx file and not what you enter into the wizard.