I too am getting the same error. I am running v12.5 rev 2213. However, I have checked the KB above and my "Allocate the maximum size..." box is not checked. The backup to disk folder is on a local drive (D:\) so cannot be losing connection to it over the network. Originally I didn't have the "mnt" folder or the "VMBackup" (my backup-to-disk folder) shared. So I shared them and re-created the Backup-to-disk folder. This seemed to work for a (very) short while but is now happening again so I guess this was a red herring. Any ideas?