When running either Lan-Free or Network based backup job, with quiescing enabled, the VM task fails with "The VM has no disks" error message.
1. Uninstall Vmtools
2. Reinstall Vmtools with "VSS Driver" unchecked.
3. Follow the instructions in this KB to make sure the "vzShadow" feature is implemented properly.
https://support.quest.com/Search/SolutionDetail.aspx?id=SOL85051
Also see VMware KB
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