Connection Error during Full VM Restore due to Decommissioned Hyper-V Host

Problem description

When attempting a Full VM Restore to an alternate location, the process fails during the destination selection. The user selects the original Hyper-V host (e.g., ddsplsrv155), but a warning icon and tooltip appear:
"Connection Error. Browsing to a local folder path on this host will not work. Select another host or restore to an SMB share."
In the Hosts management dashboard, the connection status for this host displays a red "X". Because the host has been decommissioned, it is no longer reachable, and since no other connected Hyper-V hosts are configured in the UI, the restore cannot proceed to a local disk path.

Decommissioned Host: The Hyper-V host configured in the UI has been decommissioned and removed from the environment.
Lack of Alternatives: No other Hyper-V hosts are currently registered or in a "Connected" state within the backup infrastructure.
Pre-requisite Failure: A successful Hyper-V VM restore requires a target host to be in a Connected state to allow the backup agent to browse local paths and coordinate the data transfer.

To resolve this, you must register a new, active Hyper-V host to serve as the restore target.

You can register a new host and perform the Full VM Restore to this new destination. Detailed documentation for this process can be found here:

High-Level Steps:

Step 1: Download the agent and generate activation token – Obtain the installer and the unique token from the management console.
Step 2: Install the agent – Run the installer on the new physical/virtual Hyper-V server.
Step 3: Activate the agent – Use the activation token via the UI or Command Line to link the host to your account.
(Optional) Configure Web proxy – If your environment requires a proxy for outbound communication.

Once the new host shows a green checkmark in the Hosts tab:

Re-open the Full VM Restore wizard.
Select the newly registered host from the "Destination Hyper-V Host" dropdown.
You will now be able to Browse and select local folder paths for the configuration and disks.

Include: Ensure the new host meets all system requirements for agent installation.
Exclude: Remove the decommissioned host from the Hosts list to prevent confusion in future restore operations.

Navigate to the Hosts page and confirm the new server is listed with a "Connected" status.
Launch the restore wizard and verify that selecting the new host allows you to browse local directories without the "Connection Error" tooltip appearing.