The officially supported method is of course to use sysprep (perfect for the cloning from a prepared template use case)The system cannot log you on due to the following error: The name or
security ID (SID) of the domain specified is inconsistent with the
trust information for that domain.
But for the other use cases (eg testing a P2V or an upgrade of VC VM etc) where official support is not as important (the cloned VM will be deleted once testing is done), newsid works just fine.
Microsoft documents link to sysprep, but here is the small utility downloadable for posterity
Again, this is unsupported by microsoft - use sysprep for production use