The error you are getting is:
[NFC ERROR] NfcNetTcpRead: bRead: -1
[NFC ERROR] NfcNet_Recv: requested 261976, recevied only 131072 bytes
[NFC ERROR] NfcFile_RecvMessage: data recv failed. retval = 3, expected 261976
[NFC ERROR] NFC_NETWORK_ERROR
Failed to convert disk: Operation completes asynchronously (0x300004650).
This error is caused by a limitation in VMware Virtual Disk Manager and how it handles reading and writing thick provisioned hard disks.
This error can easily be resolved by enabling basic compression in the backup job's settings.
Hope this helps!