The release on the template VM did not fix the issue. We are still experiencing the issue in two pools with the release and another 3 without the release in the templates. Both pools are experience the same issues and symptoms.
We checked our DNS servers (Our DNS servers are DHCP servers) and all we see is the IP lease expiring after it's lease time is up. We don't see any chatter at the halfway point. The IP lease is 1 hour and a normal client would have chatter like Request DHCP -> DHCP Reply -> Accept DHCP Lease... 30 minutes later request renewal and repeat until the client gets shutdown for > 1 hour. Right now what we are seeing is Client comes up once goes through that, then gets refreshed. After this refresh, we see "Agent Unreachable" in view, and then in DNS we would see the lease expire. No chatter for renewal or anything because on refresh it is pulling an APIPA address.