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Unable to create a VM of 32GB memory (RAM) with error "Memory size exceeds supported limit for given cluster version" in Red Hat Enterprise Virtualization 3.4

Solution Verified - Updated 2016-03-30T02:45:40+00:00 -

Issue

Cannot create a VM with 32GB RAM or more than 20GB memory with error:

Cannot run VM. Memory size exceeds supported limit for given cluster version.

Why is the cluster version limiting me to 16GB VMs? It was working before in version 3.1.
The RHEV environment is upgraded from RHEV3.1 to 3.2 and then RHEV3.3 to 3.4.

Environment

Red Hat Enterprise Virtualization 3.4
VM guest with Ubuntu 12.04 OS
VM guest with SUSE Linux Enterprise Server 11

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