It definitely still does not work even if I make that change.

Even if I try and run the cmdlet like so:

New-HardDisk -VM $vm -DeviceName "naa.600507681081001BA8000000000006FC" -Datastore "MY_DATASTORE" -DiskType RawPhysical -Controller $SCSIController1

I get:

New-HardDisk: Cannot bind parameter 'DeviceName' to the target. Exception setting "DeviceName": "Invalid value specified for the DeviceName parameter. Please specify a valid console device name."

Maybe it is something specific to my environment?.

What version of VMWare.PowerCLI and Powershell are you running?

I am PS version 7.3.1 in VSCode

PowerCLI Version
----------------
   VMware.PowerCLI 13.0.0 build 20829139
---------------
Component Versions
---------------
   VMware Common PowerCLI Component 13.0 build 20797081
   VMware Cis Core PowerCLI Component PowerCLI Component 13.0 build 20797636
   VMware VimAutomation VICore Commands PowerCLI Component PowerCLI Component 13.0 build 20797821
   VMware VimAutomation Storage PowerCLI Component PowerCLI Component 13.0 build 20797966