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From PR: https://github.com/ManageIQ/manageiq/pull/11135 No longer default to the Discovered virtual machine folder when provisioning VMWare VM's. https://www.pivotaltracker.com/story/show/130055823 Steps for Testing: Provision a VM from a dialog with :placement_auto set to true. The VM will now show up off the root folder for the parent datacenter as opposed to the Discovered virtual machine folder.
Fixed .Verified in 5.7.0.5-alpha2.20161014143521_cd366b6