Ah. Digging a bit: the product allows the CA automation tool to drive a session and pick up console output.
As somebody else noted, the only place in this scenario you would supply a LUname is if the CA product were talking to a ICC non-SNA console assigned to the guest - the LUname is used in the ICC tn3270E support to select the correct ICC session. If this is connecting to a guest VM system running under VM (ie, you have to DIAL to it), then there's no LUname involved - probably would need to set up a separate TCP stack that had a Telnet connection exit active to force any incoming telnet connection to DIAL to the appropriate guest. Or set up PVMG on MVS and run PVM on VM.
