I have asked a question in the past about quiescing and I know I was told where to turn it off. But what if I need quiescing to work? What options do I have
Here is the full errro
The guest OS has reported an error during quiescing. The error code was 5. The error message was VssSybStart operation failed: ( Dispatch error #8723 (0x80042413)
Isn't there a way to fix it so this vm does not fail on quiescing?
You need to find out why it's failing when quiescing is enabled, and that's not always a straightforward thing to do. There are dozens of causes why it can fail which have very little to do with VMware Tools but everything to do with Windows and how VSS works.
I will look into the what is happening with the VSS on the machine, in the mean time we have set it to non-quiescing backup but I have been told that is not a good as a quiescing backup
Your question is quite old, but for everyone get this error in current versions, VMware tools version 11 should solve the problem.
Regards
Wolfgang