Entire VM restore fails with 'An error occurred while taking a snapshot: Error.'

This can occur when a workingDir entry in the VMX causes the VM to attempt to direct snapshots to a different datastore that is not present in the site where the restore is taking place.

To restore the VM, a VM Files restore must be performed. This type of restore will restore the VM Files directly to the datastore, without attempting to register the restored VM.

1. Restore the VM Files to the datastore folder.
   Please remember that you will need to manually specify the host and folder on the datastore where the restored information will be placed.
   
   
2. After the VM Files restore, edit the VMX and remove any workingDir entries.
   Note: The VMX file can be edited from within Veeam Backup & Replication using the Files view.
   
   
3. After correcting the VMX, manually register the VM to the inventory.  
   

 
If you are unsure how to proceed, please get in touch with VMware support for assistance with VMX modifications.

Information regarding the workingDir parameter can be found here: https://kb.vmware.com/s/article/1002929