This error occurs when the CPU resource reservations of the virtual machine exceed the available capacity on the target host and vMotion of a virtual machine fails.
To resolve this issue:
- In the vSphere Client, right-click the virtual machine and click Edit Settings.
- Click the Resources tab.
- Set the CPU reservations to a value lesser than the capacity of the ESX/ESXi host.
as explained in the following vmware knowledge base article.
Posted in: VMware vSphere