VMs in the environment are not able to power on due to VMDK file locks that are held by a backup proxy VM. The backup proxy VM is shut down in order to release the locks on the production VMs and the production VMs are able to power on.
When trying to power on the backup proxy VM, the power on task fails due to VMDK file locks.
Attempting to remove the disk(s) from the Proxy VM fails with error: "The operation cannot be performed in the current state".
vSphere 8.0.X
This happens when the production VM(s) powered on, but the disks are still attached to the backup proxy VM, after it is powered off. The original VM(s) own the file locks on the disks, so the backup proxy VM will not power on.
The locks cannot be removed without shutting down the running VMs and the drives cannot be removed from backup proxy VM via the vSphere UI. The only way to remove the drives from the backup proxy VM is to delete the scsi entries from the vmx file of the backup proxy VM.