Rebuilding Host - Failed to Create

We are building a PoC, and have gotten most of the things we want configured. We are now getting an AD join issue with rebuilding hosts and only when rebuilding. I can delete and recreate and all works as expected.
The service account is the owner of the computer account, I have also given the service account full permissions to the computer account and it still fails.
I have also reviewed GPO and ensured that the service account is included in the policy for "Domain controller: Allow computer account re-use during domain join"

Below is what we are seeing in the logs any help would be appreciated.

[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:48 - Started getting computer account 'SVR1' description
[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:48 - Description 'FarmGUID:888EA1B7-C900-4AE7-B79A-7570D788BED2, SiteID:1' was found for computer account 'SVR1'
[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:48 - Started checking if computer account 'SVR1' is in OU=Servers,OU=PRAS - Session Hosts,OU=TS - Parallels RAS,DC=domain,DC=local
[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:48 - Computer account 'SVR1' is in OU=Servers,OU=PRAS - Session Hosts,OU=TS - Parallels RAS,DC=domain,DC=local
[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:48 - Started creating computer account for 'SVR1'
[I 06/00000060/T1AC0/P0F08] 02-02-26 08:42:49 - [Create AD account] Failed to create 'SVR1' with NetProvisionComputerAccount using DC: 'dc.domain.local' (An account with the same name exists in Active Directory. Re-using the account was blocked by security policy. [0x00000aac])
[E 06/00000060/T1AC0/P0F08] 02-02-26 08:42:49 - Failed to create computer account for 'SVR1'.