PROBLEM

An error as below is displayed when backing up a virtual machine:

[Inner Exception Message]: This implementation is not part of the Windows Platform FIPS validated cryptographic algorithms.

CAUSE

This is a known issue if FIPS policies are enabled on the machine running VM Backup.

SOLUTION

To solve this issue, perform the following 2 steps to disable FIPS policies on the machine running VM Backup:

1. Go to [Control Panel] > [Administrative Tools] > [Local Security Policy]
   
   

   DISABLE the setting for "System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing" as shown below:
   

   Note: Ensure this is disabled on both the local and the group policy if you have one applied.
   
   

2. Open the registry editor and set the following key to a value of '0':

    

   HKLM\System\CurrentControlSet\Control\Lsa\FIPSAlgorithmPolicy\Enabled

    

   Then reboot the machine to affect the registry changes, and attempt the backup again, this should be successful.