Backup of templates fails with "Cannot process VM, template processing is disabled"
Challenge
A container (folder, host, cluster, etc.) is added to the backup and contains templates inside. However, if you disable "Backup VM templates" in "Exclusions...", the templates still end up as failed tasks in the job instead of being skipped.
Job log contains the following line:
Error Cannot process <VM Name> (vm-vmid): template processing is disabled (System.Exception)
Solution
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