That was a persistent error every time the Vmware Data Recovery appliance tries to take a snapshot of the server for backup.
I had to make sure VSS provider exists by running vssadmin list providers on the effected server, also listening all VSS writers and making sure none of them is reporting an error (by running the command vssadmin list writers)
Make sure MS VSS service set to start manually and the COM+ System Application set to start automatically and it is running.
If the above doesn’t resolve the issue, re-install Vmware tools on the server to re-register VSS.
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