This can occur when a folder or vmdk with the same name exists on the desired datastore. In rare cases this can also exist when the ESXi host still has references to the deleted vmdk file/folder that it has not yet purged.
If the folder or vmdk files are present and not needed delete those files.
If no files or folders are present, then its possible the Host is the issue. Rebooting the host will resolve this issue.
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