As announced earlier this month (https://t.co/l7JVfqcLQs), a new setting has been introduced in preview to allow renaming Windows 10 device enrolled in Intune.
As this is a preview feature, there is always chance to have unexpected behaviour; one has been found.
It appears that if your Windows 10 device is also AD domain joined (including Hybrid Azure AD), then the rename device flow might not complete successfully. After the rename operation was reported completed, the new device name was not reflected in Active Directory, resulting in logon errors.
Until a fix is found, the ‘rename device’ option is disabled for Windows 10 device member of an AD domain and/or Hybrid Azure AD mode, while it is still available for Intune/Azure AD only joined devices.