Hat-Tip/Kudos to Nesma Ghazaly a VMware Support Engineer
Prompt response to SR raised
This worked for me
Each workaround is a separate fix.
Rename the vmsd file and once a new Snapshot is taken, a new vmsd file will be created
To perform this workaround , follow the below steps:
Make a note of the datastore where the VM is stored.
Connect to the ESXi host with an SSH session.
Navigate to the datastore
cd /vmfs/volumes/DATASTORE/VM_Name/
List all the files in the folder with: ls -l
Rename the .vmsd file to .vmsd.old
mv VM_Name.vmsd VM_Name.vmsd.old
Take or Remove the Snapshot (according to the initial issue)
OR
vMotion the affected VM to another host and test the snapshot - vMotion creates a new VM world and would use a new in-memory dictionary file.
OR
Power cycle the VM (OFF->ON)
OR
If the above workarounds didn't help, the only option is to Power OFF the VM, unregister from vCenter, Re-Register and Power ON the VM. For more information about unregistering VM and register it back to ESXi Host