VMware vSAN 7.x
VMware vSAN 8.x
The reason why the VM snapshot creation (and thus the backup) fails is due to the VM's vmdks do not have any backing vSAN object.
This can be validated by verifying the contents of the VM's vmdk file, it would point to a "-flat.vmdk" data file, instead of a vSAN object:
# Extent descriptionRW 419430400 FLAT "<vm_name>-flat.vmdk" 0VMs which have their disks on vSAN datastore will not have the "-flat.vmdk" datafile, instead it uses the vSAN vdisk object to store the data.
For example, here is the contents of a VM's disk descriptor file where the vmdk is backed by a vSAN vdisk object:
# Extent description
RW 83886080 VMFS "vsan://################-###############/cee23366-e2f6-####-0c23-############"
To resolve this issue:
Storage vMotion the affected VM from the vSAN datastore to a VMFS or NFS datastore.
If the Storage vMotion task fails with the VM powered ON: Power OFF the VM, Compute vMotion the VM to another host, and then Storage vMotion the VM to another host.
Once the VM is on the VMFS/NFS datastore, proceed to Storage vMotion the VM back to the vSAN datastore.
On Storage vMotion of the VM back to the vSAN datastore, the backing object for the vmdk will be created.
Post this VM's snapshot creation and backup will be successful.
For more information of Flat VMDK on vSAN, refer this KB.