Backup attempt of VM with special characters in the name, results in error message
"Error Message: 3201 - can't open [DATASTORE] VM@Name/VM@Name.vmdk"
This issue is seen when special characters like %, &, *, $, #, @, !, \, /, :, *, ?, ", <, >, |, ;, ' etc are contained in names of vSphere entities like virtual machine name, cluster name, datastore/folder/file name etc.
Cloning the Virtual machine to a name without special characters resolved the issue in this case.
For other options to rename the Virtual Machine, see the following VMware kb