vMotion – Not Allowed in the Current State

First things first, I vMotioned the vm to another host and that worked fine, so the issue appeared to be target related. I also found this post, which states to restart the mgmt and vpxa services:

/etc/init.d/hostd restart

/etc/init.d/vpxa restart

doing this on the source ESXi did nothing, again seeming the issue is on the target. Did the same tasks on the target and it still failed.

I then disconnected the target esxi, put it in maintenance mode, rebooted it, took it out of maintenance mode, reconnected to vCenter, and this time the vMotino worked.

Hope this helps someone.

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