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Why is 'Not_Set' listed in the Desktop Administrator License Manager folder?
The name listed in the License Manager section of the Desktop Administrator is the hostname of the License Manager server selected during the installation of ArcGIS. If no license manager was selected at the time of install, 'NOT_SET' is used.
If selecting to subsequently install a License Manager on the machine, the 'Not_Set' value does not change. It must be manually changed to point to a valid License Manager server.
See the link in the Related Information section for more information.