Justed wanted to add some documentation links. https://docs.microsoft.com/en-us/system-center/vmm/network-pool
Looks like we need to inspect our powershell commands then to see what they're doing versus what you're expecting. If you set the application to use "debug" mode, you should be able to see the exact powershell commands being run. In debug mode they are logged to $vmdb/log/scvmm.log. Please set your app to debug mode and try to provision again. Then attach the scvmm.log here.
Just to be clear, are you saying the static IP that is assigned to the guest OS is not one from the pool?
That is correct. The guest OS fails to get an IP and the config in the guest OS shows static with a 169.254 address
https://github.com/ManageIQ/manageiq/pull/15610 (Fine/Euwe) and https://github.com/ManageIQ/manageiq-providers-scvmm/pull/9 (master)