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The information on this page refers to LM-X License Manager 4.9.5 or newer, which introduced support for

licensing cloud applications for Microsoft Azure and Google Compute Engine (GCE)

KVM and QEMU virtualization detection. If you are running a previous version of License Statistics, please see documentation for previous versions.

Licensing your software to run on virtual machines or in a cloud environment carries special considerations, as described below.

...

By default, LM-X denies all checkouts for local licenses in virtual environments, such as VMware, Microsoft Hyper-V, and VirtualBox, and refuses to load licenses on license servers to prevent potential license overuse. Virtualization detection is officially supported for VMware, Microsoft Hyper-V, VirtualBox, KVM and QEMU.

Virtual machine environments are typically undesirable for use with software licensing. Normally, operating systems running in virtual environments are designed to be hardware independent, so Ethernet or harddisk HostIDs no longer specify physical hardware identifiers. Duplicating the virtual machines and modifying the HostIDs is simple and takes minutes to perform.

...