One computer with two IPs – One IP could not be registered on the interface

Tags:
IP address
Microsoft Windows
Networking
Environment:
- Workgroup with three Windows 7 Pro desktop computers each with single NIC's and no wireless capability.
- Each computer is configured to use DHCP on the router. There is no domain controller nor DHCP server.
- One workstation with machine name MAIN-PC, is sharing a folder and has a DHCP provided address of 192.168.0.120. For this example, let's presume the shared folder is open to the Everyone group in both share permissions and Windows security permissions.
- Machine names CLIENT-1 and CLIENT-2 have mapped network drives to the shared folder on MAIN-PC. For each one, Advanced TCP/IP Settings shows NetBIOS setting configured as Default (Use NetBIOS setting from the DHCP server.)
- An additional half dozen computers also share the internet connection.
Problems:
While using CLIENT-1 or CLIENT-2 both ping and tracert to MAIN-PC returns an incorrect address of 192.168.0.169, instead of 192.168.0.120. The mapped network drives, which reference machine name MAIN-PC, doesn't allow access and prompts for credentials. The shared folder on MAIN-PC is open to Everyone group so permissions aren't needed. Also, using Windows Explorer and browsing to \192.168.0.120 shows the open shared folder.
While using MAIN-PC, a tracert to 192.168.0.120 includes the words "Tracing route to MAIN-PC" which is expected. However, a tracert to 192.168.0.169 includes the words "Tracing route to MAIN-PC" which is not expected. A tracert to MAIN-PC includes the words "Tracing route to MAIN-PC" and displays the IPv6 address.
 In System Event Viewer, there are recurring entries for:
Log Name: System
Source: NetBT
Date: 3/10/2017 10:07:30 AM
Event ID: 4321
Task Category: None
Level: Error
Keywords: Classic
User: N/A
Computer: MAIN-PC
Description:
The name "MAIN-PC :0" could not be registered on the interface with IP address 192.168.0.120. The computer with the IP address 192.168.0.169 did not allow the name to be claimed by this computer.
Why does MAIN-PC with a single network interface and no addition IP addresses on the NIC, have two IP addresses 192.168.0.120 and 192.168.0.169?
Why does CLIENT-1 and CLIENT-2 resolve the machine MAIN-PC to the wrong IP address 192.168.0.169?
My understanding is that in a WORKGROUP, NetBIOS is being used for name resolution. I have run ipconfig/flushdns on MAIN-PC, CLIENT-1 and CLIENT-2. The phantom 192.168.0.169 still appears. How do I troubleshoot this further?
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