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Here is the entire backup log for reference. Any what is strange is that besides the error, it does still seem that the backup was complete. Unfortunately, when I try and restart the job from the failed backup, the same error occurs indicating license restriction. The parameters returned are the VM's handle, and the expected and actual VM state at the time of the call. If I try and run the above code against the actual running VM I get the following error: You attempted an operation on a VM that was not in an appropriate power state at the time for example, you attempted to start a VM that was already running. I ran the above code against the VM I assume was created by XO for the backups (it's a halted VM and has the backup name within brackets). The interface you use to manage the license files and the license. Licenses are granted via the Citrix vendor daemon which is a process (Citrix.exe) running on the license server. Can be dedicated or shared depending of the size of your infrastructure. Looking at the documentation, I need to run vm-param-set from CLI: xe vm-param-set has-vendor-device=false uuid= Server hosting the Citrix license software and the licenses. Open the Windows Explorer and navigate to where the license files are stored. This weekend during our delta backups, it appears that all of the Windows Server VM's failed to backup with the following error: LICENSE_RESTRICTION (PCI_device_for_auto_update) At the License Server, open the Services panel and stop the Citrix Licensing service. We recently downgraded our Citrix Hypervisor licenses from enterprise to standard (still licensed but only standard license).