The DEDUP backup attempt was unsuccessful for virtual machine 'virtual machine name'. Retry #retry attempt number with DEDUP disabled.
The attempt to backup the virtual machine with DEDUP enabled was unsuccessful. Instead of failing the backup right away, an attempt is being made to backup the virtual machine with DEDUP disabled.
Processing continues with DEDUP disabled.
Check the log files for messages as to why DEDUP failed. If future attempts to backup using DEDUP fail, contact your system administator.