VM VDDK Error: Insufficient permissions in the host operating system (permission to perform this operation was denied. you do not hold privilege)

Issue: my backup team informed me that VADP level backup failed for one of my VM and error message showed as

Oct 13 19:02:00 s575mjikz005 logger: * VMname:*FULL* The following internal error occurred: An error was returned from nsrvddk.exe: Error opening disk, [datastore_] VM_test/VM_test-000001.vmdk: VDDK Error: Insufficient permissions in the host operating system

Findings: Up on checking the Vcenter, the VM looks fine and I can able to create  manual snapshot. but I cannot perform other VM features such as vMotion, clone, delete VM. when I tried to move VM to another folder given error message

 

 

the issue is here My domain account as well VADP backup account recently added to administrator group in vcenter windows machine ( windows local permission)  and in the vcenter level, power user permission has given to windows machine administrator group which propagated power user permission to my account as well VADP account. ( even though my account and VADP account has administrator permission in vcenter level)

Solution: logged in to vcenter windows machine and removed my account as well VADP account from administrator group and now as usual,  my account and VADP account got administrator permission and backup team able to perform VADP backup as well.