Update.
The VM in question is a 2008 R2 and is the only one that is entering a saved state during backup. The snapshot portion of the backup does fail and looking at the event viewer of the hyper v host, I see VSS errors.
A VSS writer has rejected an event with error 0x800423f3, The writer experienced a transient error. If the backup process is retried,
the error may not reoccur.
. Changes that the writer made to the writer components while handling the event will not be available to the requester. Check the event log for related events from the application hosting the VSS writer.
Operation:
PostSnapshot Event
Context:
Execution Context: Writer
Writer Class Id: {66841cd4-6ded-4f4b-8f17-fd23f8ddc3de}
Writer Name: Microsoft Hyper-V VSS Writer
Writer Instance ID: {763a78bf-6881-4b16-be89-3524c7934dd5}
Command Line: C:\Windows\system32\vmms.exe
Process ID: 1764
vssadmin list writers shows:
Writer name: 'Microsoft Hyper-V VSS Writer'
Writer Id: {66841cd4-6ded-4f4b-8f17-fd23f8ddc3de}
Writer Instance Id: {763a78bf-6881-4b16-be89-3524c7934dd5}
State: [11] Failed
Last error: Retryable error
If I move this VM to another host, I have the same issue. There are no VSS errors in the actual VM itself.