0x80070780: The file cannot be accessed by the system

Today got this error when trying to import a virtual machine on my newly rebuilt Hyper-V VM host running Windows Server 2019:

0x80070780: The file cannot be accessed by the system

I tried playing with permissions but it kept erroring out saying that it couldn't access the vhdx files. Finally, I realized that when I rebuilt the VM host, I forgot to install the data deduplication feature and thus the system could see the file names, but not access the deduplicated data.

After I enabled the data deduplication role service and rebooted, the system recognized the drives had deduplicated data and could access the files without issue.