Veeam – Unable to allocate processing resources. Error: On-host proxy [HOSTNAME] requires upgrade before it can be used.

The error On-host proxy requires upgrade before it can be used can occur if the host has been renamed and or added to a new domain with a new name.

The quick and easy way to resolve this is to remove all the backup jobs, hosts and cluster from Veeam so there are no entries then add the servers, clusters and backups jobs back in again. After doing this the backups will then work.

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