This error occurs if you are using VVol or vSAN datastores. The reason is a known issue in the VDDK library, which is used for managing and accessing VMware virtual disks. The issue will be fixed in one of the nearest upcoming releases.
The temporary workarounds are:
- explicitly Explicitly specify another mode, such as NBDSSL or HotAdd
- move Move the virtual disk to a VMFS datastore.