The error occurs if the .vmx file of the VM is either corrupt or blank.

In order to resolve the issue:

  1. Replace the .vmx file of the VM with the .vmx.LMBackup file found within the same VM’s folder.
  2. Recreate the .vmx file for the VM.

The path to the VM’s vmx file can be found out by looking at the context view under, Resources->Datastores…