Cause:
This error occurs when VMs with duplicate UUIDs are available in the source ESXi host. When an entire host is selected (or) VMs are individually selected for backup, then the backup will be skipped for all the VMs with duplicate UUIDs.
Solution:
First, get the list of VMs with their UUID on the source host and then separate the VMs with the same UUID. After which you can change the duplicate UUIDS to unique.
Steps To Get the List of VMs and their UUID from the Source Host:
Install-Module -Name VMware.PowerCLI
#accept repo warning and install
Set-ExecutionPolicy -ExecutionPolicy Unrestricted
Set-PowerCLIConfiguration -Scope User -InvalidCertificateAction prompt
Connect-VIServer -Server IP_ADDRESS -Protocol https -User USER -Password PASS
get-vm | get-view | select name,@{l="uuid";e={$_.config.instanceuuid}} | export-csv ~\desktop\VmInstanceUUID.csv
Step To Change the InstanceUUID of the VM:
<spec>
<instanceUuid>2499952a-6c85-480e-b7df-4cbd2137eb69</instanceUuid>
</spec>
Note: The 2499952a-6c85-480e-b7df-4cbd2137eb69 string mentioned above is a sample UUID. You need to replace it with the UUID that you want to apply.