The steps to resolve that issue is to:
1. In systems management, delete the lower case entry in the Computer Name: field for respective system.
2. Click save.
3. Click "Test System" this will reach out to the member server and fetch the correct system name.
4. Click the Details tab twice to refresh and populate the computer name field.
5. Perform a PSM session.
Note: If the Computer Name field is not populated then TPAM will auto populate PPM auto managed systems.
Batch update on existing lower case systems can be performed. CLI does not see case sensitive text so the best solution is to run a CLI command to delete the computer name field then clicking "Test System".