ACO4354E SQL clone backup is not supported for the VSS System Provider snapshots.

Explanation

Data Protection for Microsoft SQL Server cannot create a SQL clone backup because it requires a VSS hardware provider that can create transportable snapshots. This is because either the production database are stored on local volumes that use the system VSS provider, or, because the vssusesystemprovider option specifies to use the Windows system provider. The Data Protection for Microsoft SQL Server error log and Windows event log can contain additional information about this error.