Recently, we ran into a case where Veeam backups for Hyper-V VMs would fail after about a day with the Error code: ‘32774’ failing to create VM recovery snapshot. Restarting the Hyper-V VM would resolve the issue temporarily, but inevitably would start to fail again. In a situation where a Hyper-V VM is failing to create a snapshot a good way to determine if Veeam or the Hyper-V is an issue is to attempt a manual snapshot on the Hyper-V hypervisor.
We were also seeing “NT Virtual Machine\Virtual Machines group on the HyperVisor does not have the Log on as Service Right” This doesn’t always appear as an error in Veeam, sometimes showing it with a Green checkmark, so it could easily go overlooked. After some research, the Log on as a Service right error always occurred right before the failures start. This led us to investigate the Log on as a Service right on group policies.
In this instance, we moved the Hyper-V into its own OU that we manually created a group policy to allow NT Virtual Machine\Virtual Machines the right to Log on as a Service, and to not inherit any other GPO, yet the error continues to occur.
We then discovered the Domain had a forced GPO that was overwriting all other individual GPO’s for the OUs. Once this was turned off, the job started working perfectly.
In short, make sure the Hyper-V server has all the rights it needs to do backups and make sure there aren’t any forced GPO’s coming down to prevent this.
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