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

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

In order 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 keep in mind you must manually specify the host and folder on the datastore where the restored information will be placed.
   
   
2. After the VM Files restore completes, 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, manualy register the VM to inventory.  
   

 
If you are unsure on how to proceed, please contact VMware support for assistaance with VMX modifications.

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