Hyper-V Backups fail with VSS errors when backing up Cluster Shared Volumes (4035588)

Hyper-V Plugin backups are failing with VSS errors, VSS errors are also visible on the failing VMs Event logs:

A VSS writer has rejected an event with error 0x800423f3, The writer experienced a transient error.  If the backup process is retried,
the error may not reoccur. Changes that the writer made to the writer components while handling the event will not be available to the requester. Check the event log for related events from the application hosting the VSS writer.

Operation:
  PrepareForSnapshot Event

Context:
  Execution Context: Writer
  Writer Class Id: {66841cd4-6ded-4f4b-8f17-fd23f8ddc3de}
  Writer Name: Microsoft Hyper-V VSS Writer
  Writer Instance ID: {a34d8ba2-a62a-4c02-aaac-9bbb954a106f}
  Command Line: C:\Windows\system32\vmms.exe

**The Hyper-V Writer also faults**

Writer name: 'Microsoft Hyper-V VSS Writer'
  Writer Id: {66841cd4-6ded-4f4b-8f17-fd23f8ddc3de}
  Writer Instance Id: {a34d8ba2-a62a-4c02-aaac-9bbb954a106f}
  State: [8] Failed
  Last error: Retryable error