Anyhow, please be aware that the flexlm is configured to read the host id for the partition where the toolbox is installed.
It's not.
lmhostid and mbd_pnt_hostid are both returning the serial number for the B: drive despite the toolbox and all NXP tools being installed on C:

I called lmhostid from both the B: drive and the C: drive and received the B: drive's volume serial number.

I pulled my DVD drive and added another hard drive I had laying around to D:
When the drive is D: it returns the VSN of B:, I moved the D: drive to the A: drive. lmhostid then started returning the VSN of the A: drive.

lmhostid is returning the drive letter of the first alphabetic drive. Not the drive where it is installed or the drive where it is called from.
The reason my C: drive 'only' had 7 characters was because it's a hexadecimal representation of the actual serial number. Your licensing tool strips all preceding zeros. My best guess would be this happens when the hex is converted into an integer.

Those patches have all already been applied. (Which is how I was able to use it in the first place). This issue only arose when I added a second hard drive and through happenstance decided to name it B:.
I just tried with a removable disk and this does not occur. So lmhostid only grabs the VSN of the first permanent disk.