RHEV : Virtual Machine goes into paused state reporting unknown storage error

Issue

• VM pauses on RHEV GUI .
• Engine logs report as follows

2016-09-30 04:02:08,435 INFO  [org.ovirt.engine.core.vdsbroker.VmAnalyzer] (DefaultQuartzScheduler_Worker-3) [17516804] VM '94e1c387-cf6a-4936-bea5-2ed4f9a7639c'(redhat-guest-vm-1) moved from 'Up' --> 'Paused'
2016-09-30 04:02:08,521 INFO  [org.ovirt.engine.core.dal.dbbroker.auditloghandling.AuditLogDirector] (DefaultQuartzScheduler_Worker-3) [17516804] Correlation ID: null, Call Stack: null, Custom Event ID: -1, Message: VM redhat-guest-vm-1 has been paused.
2016-09-30 04:02:08,601 ERROR [org.ovirt.engine.core.dal.dbbroker.auditloghandling.AuditLogDirector] (DefaultQuartzScheduler_Worker-3) [17516804] Correlation ID: null, Call Stack: null, Custom Event ID: -1, Message: VM redhat-guest-vm-1 has been paused due to unknown storage error.

• Vdsm logs

periodic/835::ERROR::2016-09-30 04:02:06,358::vm::1000::virt.vm::(_shouldExtendVolume) vmId=`94e1c387-cf6a-4936-bea5-2ed4f9a7639c`::Improbable extension request for volume 434123b9-c818-40ab-8f28-0462363994dd   on domain 0e35d9d7-ccee-457a-834a-de9a1c47134d, pausing the VM to avoid corruptions (capacity: 21474836480, allocated: 24286769152, physical: 31138512896, next physical size: 23622320128)
libvirtEventLoop::DEBUG::2016-09-30 04:02:06,367::vm::4648::virt.vm::(onLibvirtLifecycleEvent) vmId=`94e1c387-cf6a-4936-bea5-2ed4f9a7639c`::event Suspended detail 0 opaque None
periodic/835::INFO::2016-09-30 04:02:06,369::vm::5169::virt.vm::(_logGuestCpuStatus) vmId=`94e1c387-cf6a-4936-bea5-2ed4f9a7639c`::CPU stopped: pause
periodic/835::DEBUG::2016-09-30 04:02:06,370::__init__::207::jsonrpc.Notification::(emit) Sending event {"params": {"notify_time": 4447032490, "94e1c387-cf6a-4936-bea5-2ed4f9a7639c": {"status": "Paused"}},      "jsonrpc": "2.0", "method": "|virt|VM_status|94e1c387-cf6a-4936-bea5-2ed4f9a7639c"}