Backup job for VM with VHD set fails with "Failed to create collection recovery checkpoint"

Challenge

Backup tasks for VM with VHD set (inrtoduced in Hyper-V 2016) fails with an error:

Failed to create VM recovery checkpoint (mode: Crash consistent) Details: Job failed ('Failed to create checkpoint on collection 'Hyper-V Collection' (xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx). The operation failed.'). Error code: '32768'. Failed to create collection recovery checkpoint

You may find following event in the Windows Event for Hyper-V Integration Services:

'VM_name' could not initiate a checkpoint operation: General access denied error (0x80070005). (Virtual machine ID xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx)

Cause

VMs with VHD sets cannot be backed up, that first appeared in KB3200970, that leads to inability of creating collection checkpoint with access denied error.

Solution

Please run following PS command to grant access for each VMs with VHDs disks:

icacls .\diskname.vhds /T /grant "NT VIRTUAL MACHINE\xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx:(R,W)"

Where "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx" is an ID of a VM. You may retrieve this ID through the Get-VM cmdlet.

Be aware SOFS VMs cannot be backed up as in-guest CSVs are not supported. And checkpoint won't be created with:
Guest cluster validation on VM group 'Hyper-V Collection' (xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx) failed for checkpoint creation.
Size of the VM group 'Hyper-V Collection' (xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx) is not same with the size of the guest cluster.'). Error code: '32785'.