Yes, I have seen AutoPass License server (APLS) work with restricting license by host name. If the hostname does not have as Fully Qualified Domain Name (FQDN like ''ANANTHMA6.asiapacific.hpqcorp.net''), instead has just ''ANANTHMA6''. The reservation pool doesn't recognize the hostname, as the AutoPass Client appends the ''.'' To ''ANANTHMA6'' (''ANANTHMA6.'') on checkout request.
HPE has stated in Document [KM02615179][1] there is change request to fix this issue in future release of UFT. (currently not supported in UFT 12.54)
[1]: https://softwaresupport.hpe.com/group/softwaresupport/search-result/-/facetsearch/document/KM02615179