PROBLEM

You are unable to restore your VM due to an unsupported VM configuration version error with code ALTERR_RESTOREPROVIDER_407 as below:

"The Configuration version of the VM you are trying to restore is not supported by the Hyper-V Host Operating System."

CAUSE

The above error means that the Configuration version your VM was running at the time of backup is not compatible with the Hyper-V host you are trying to restore it to. 

Microsoft no longer supports restoring VMs with an older configuration version to a Host running a newer version.

Similarly you are not able to restore a VM with a newer configuration version to a Host with an older one.

You may check your Hyper-V host's compatibility with other Hyper-V versions by running the below command in powershell:

 "Get-VMHostSupportedVersion"

SOLUTION

You should, of course, first try to locate a compatible Hyper-V host for your VM within your network which you can restore to easily.

Alternatively, if the above is not an option, you may choose to restore the VM's virtual disks, then proceed to attach them to a newly created VM on your target restore host. 

As a best practice, to ensure a smooth restore process, the new VM should be configured to the customers specifications before attaching the restored virtual disks.