VM recovery job fails when restoring VM to a Windows default file share

Note: Valid for Hyper-V.

Symptom

When restoring VM by specifying Windows default file share (For example, \\hostname\C$\abc) as the destination path, restore job fails and the following error message appears:

VM recovery job was unable to create the new virtual machine.

Solution

The job failure is expected as VM files cannot be stored in Windows system default file share. Only Microsoft SMB 3.0 file share is supported. For more details, refer to Microsoft documentation.