Hey Roopeshm,
I usually see this happen when a Windows Instance (both Virtual and Physical) have a ton of VSS snapshots, or have modified VSS snapshot configuration. For example, I saw this a few weeks ago in an environment where the IT team configured snapshots on an hourly basis, resulting in tons of VSS snapshots, causing a large amount of time needing snapshots to be processed.
When you add in a backup application, like Veeam, timeouts can be hit due to the increased amount of time for a VSS snapshot to be processed.
In most cases when I run in to this, if appropriate (need to verify you can), I'd remove all the VSS snapshots in the VM, check the configuration, and usually after clearing all snapshots, issues will be resolved.
Cheers,
Stephen