A distributed share spreads the workload by distributing the hosting of top-level directories across FSVMs. The issue is due to the fact that Nutanix Files uses DFS namespace to provide shares to the Windows clients, meaning that the client will be connecting to the generic DFS namespace and not, in particular, the FSVM which serves the share that is which holds the VG for the share. So if the client connects to an FSVM where it just holds the re-parse point within the DFS namespace the rename operation will fail with an error of "Invalid device".
The workaround is to make sure that you connect to the FSVM serving the top level domain (TLD). Please refer to the following KB article for the detailed process to connect to the FSVM serving the TLD. Once connected to the serving FSVM the rename operation can be performed successfully.
https://portal.nutanix.com/kb/000004187