Getting status code 156 on Hyper-V client VM backup

Created a new policy for a VM client and getting a few errors.  The first one you get anytime you make changes and save the policy:

Snapshot could not be created with Hyper-V_v2 method  (Status 223)

When running a backup, I get the 156 status code. 

Finally the bpVMuitil.exe file crashes consistently (errors in app event log)

Attached policy config, application event log and NBU logs.