Ara Operations 8.12 and later
This is expected behavior. If a powered-off VM has snapshots, they will not be shown as reclaimable snapshots
The workaround is to disable powered-off VMs from the Reclamation Settings. Since it takes priority, after disabling it, snapshots for powered-off VMs will become reclaimable. The drawback for this workaround is that, powered-off VMs will not be considered reclaimable.