Beremote debug logs shows the error:
[fsys\brfs] - brUtil::CreateObject failed with (error 0xe00084bd) while creating the object: \\?\C:\Restore\C\VM\VM1\Disk1.vhdx
[fsys\vrtsrv] - VRTSRV:Status FS_PATH_NOT_FOUND (0xE00084BD) calling FS_CreateObj in VirtualServer::CreateObj:429
[ndmp\loops] - LP_ENV::MsgError: error 0xe00084bd processing object C:\VM\VM1\Disk1.vhdx
This issue is resolved in Backup Exec 23
0xe00084bd - The system cannot find the path specified - unable to restore file or directory."