Error Details:

Failed to create processing task for VM HO-PROD1 Error: Cannot find suitable proxy for retrieving data from storage snapshot, and the option to failover to backup from VM snapshot is disabled.


To resolve this issue open up Properties of that backup job, navigate to “Storage” -> Advance Options

Click “Failover to standard backup” field under the Advanced Settings page was not selected by me, and after the relevant field was ticked , after the backup job was started.

Reference Link: