Hyper-V Virtual Machine continously goes to "Paused" state

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Issue

RHEL Virtual Machine running in Hyper-V goes to "Paused" state. "Disk(s) running out of space" warning is displayed. When attempting to start the VM again, it returns to "Paused" state after a couple of seconds

Environment

Microsoft Hyper-V
Thin Allocated VHD(X) images

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