Failed to create VSS snapshot required to run system state backup.

It could be that the volume is out of space where the shadow storage is located. If you look in the filescan.log file, you should see the snapshot attempt there for system state and be able to get more details.

Also application and system log on windows would have more info

Also, please refer this Knowledge base article for fixing this issue

Error Code [17:176] Failed to create VSS snapshot required to run system state backup. System state backup is skipped. VSS error [[0x80004005 2147500037] Unspecified error]

Hello @Manjunatha Reddy 

You can attempt to run a system state backup from the OS itself with the help of your Windows team and check if that's successful. This will also help in narrowing down the issue you are facing. 

Best,

Rajiv Singal