When CBRC is enabled on an ESXi 7.0 Update 1 and ESXi 7.0 Update 2 host, you experience these symptoms:
“Error during provisioning cloning of VM failed: Fault type is VC_FAULT_FATAL The operation not supported on the object”
This issue occurs because with storage vMotion, the digest vmdk creation is not handled well in vSphere 7.0 Update 2. Previously, vsanDatastore is using vmfs5 to create VSAN namespace object. vmfsSparse is selected as create type for digest vmdk by default. In vSphere 7.0 Update 2, vmfs6 is introduced for the VSAN namespace object and seSparse is expected for the digest vmdk. It is a new behavior in digest disk creation workflow. In failure cases, current logic still selects vmfsSparse as create type.
With vMotion, the source and destination host are different. Further, the storage is non-shared. The destination host does not have access to the source vmfs datastore. So, a remote NFC copy path is taken to copy the child disk and its digest. In this path, the objParams passed by NFC copy is NULL. As a result, the objType is choosing OBJTYPE_VSAN according to file path, which is under the vsanDatastore.
This is a known issue affecting VMware ESXi 7.0 Update 2.
Currently, there is no resolution.
To work around this issue, consolidate all snapshots before migrating the virtual machine. Alternatively, delete all snapshots before migrating the virtual machine.