Hi @Phil Ready ,
To my knowledge, since the VM's are cloned, AD will have information about Exchange Hybrid and you might need to run the Setup /PrepareSchema with /TenantOrganizationConfig and then /PrepareAD.
However, with the error message you shared, it looks like either the account you are using is not part of "Discovery Management" role in Exchange or an issue with Arbitration mailboxes. For the former, add your account to Discovery Management using Exchange Admin center and for the latter, check the below
https://www.petenetlive.com/KB/Article/0001221
If the above suggestion helps, please click on "Accept Answer" and upvote it.