Hi Tyagirr0063
This doesn't look to a problem on horizon side. First try to isolate the issue outside horizon, what if you clone a VM directly in vCenter on same host and datastore that you have defined under horizon desktop pool?
If this also fails, it means the issue lies at vcenter/host/hardware level. During a cloning process please keep a track of events under vSphere Web Client > vCenter Server > Cluster > Host > Monitor > Events and we need to proceed accordingly. You can share a snippet of events here as well.