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It should not be a requirement to use the TS Variable _SMSTSMachineName in order to retain a known system's name with a refresh - CM will do this all by itself. If this is the same TS that is been used for known and unkown then remove this task sequence variable as per the reason above.

$location = Get-ItemProperty "HKLM:SOFTWARE\Microsoft\SMS\Setup" | Select-Object -ExpandProperty "UI Installation Directory" Resolves to C:\Program Files\Microsoft Configuration Manager\AdminConsole. That is the correct registry key. However AdminConsole folder is not in the C:\Program Files\Microsoft Configuration Manager The Module is only in x86 folder. I changed the registry 'UI Installation Directory' to point to: C:\Program Files (x86)\Microsoft Configuration Manager\AdminConsole and script is working after that change.