I try to create snapshot a VM on host running Windows Server 2012 and it results in error saying “A required privilege is not heold by the client. (0x80070522).

I am a member of local administrators group and Hyper-V administrator. The .avhd file was created in snapshot folder but it is stopped at the end before putting the snapshot name.

The resolution is to logon to VM and restart Windows on guest machine.

The root cause is unclear but  the problem does not happen again after reboot VM.