When you clone a virtual machine from any existing snapshot in VMware and you get the following error in VMWare, the reason is VM was powered on or suspended when you took that snapshot. So you only have an option to clone the VM from its current state.

You cannot make a clone of a virtual machine or snapshot that is powered on or suspended

To clone the machine from any snapshot, It is recommended to always power off the virtual machine and then take that snapshot.

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VMWare: You Cannot Make a Clone of a Virtual Machine or Snapshot that is Powered on or Suspended

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