You are right, in the same datacenter then it is not a vMotion.
Let's try something else, I would propose to try the move with the SDK API method.
Like this
$vm=Get-VM-Namedmcvm01075
$folder=Get-Datacenter-Namecly|Get-Folder-Name"Decom VM's"
$folder.ExtensionData.MoveIntoFolder($vm.ExtensionData.MoRef)
If this fails there should be some extra info in the vpxd logs on the vCenter.
These logs are normally in the "C:\ProgramData\VMware\VMware VirtualCenter\Logs" folder on the vCenter.