Microsoft has released a hotfix to solve this problem
Hotfix Package 4 for Microsoft Application Virtualization 4.6 RTM: October 2010
This is a server backup issue. On a Windows Server, you install App-v 4.6 and Q(or other drvie letter) drive will be created. You are trying to use Windows Server Backup on host machine to perform online backup of Hyper-V guest machine, and trying to use the commands "vssadmin list volumes" or "vssadmin list shadowstorage", but you get the following error:
"Error: The shadow copy provider had an unexpected error while trying to process the specified command."
Right clicking on the C: volume and clicking "Configure Shadow Copies...", the following error is shown:
"Failed to retrieve volumes that are eligible for shadow copies.
Error 0x8004230f: The shadow copy provider had an unexpected error while trying to process the specified operation."
Additionally, in the event log, you could notice the VSS event 12293, 8193, 12348.
What is Q drive
Q drive is the location that you can save files while you are sequencing an application from App-v.
The App-V drive you specify must be accessible on targeted computers. If drive Q is not accessible, you can choose a different drive letter.
This issue is actually caused by the additional Q drive.
The Q drive created by App-V is not NTFS which prevent a backup from being performed.
Uninstall App-V 4.6 can resolve it.
All disks being used by the virtual machine are configured within the guest operating system as NTFS-formatted basic disks. Virtual machines that use dynamic disks or the FAT32 file system prevent an online backup from being performed.
See details at: