When attempting to create a Machine Catalog using Machine Creation Services error "Permission to perform this operation was denied” is displayed.

Exception: 

Citrix.Console.Models.Exceptions.ProvisioningTaskException Failed to copy the snapshot image <ImageName> - <> to the storage referenced by the Resources VMware SDC Machines. 
at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeTask.CheckForTerminatingError(SdkProvisioningSchemeAction sdkProvisioningSchemeAction) 
at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeTask.WaitForProvisioningSchemeActionCompletion(Guid taskId, Action`1 actionResultsObtained) 
at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.StartProvisioningAction() 
at Citrix.Console.PowerShellSdk.ProvisioningSchemeService.BackgroundTasks.ProvisioningSchemeCreationTask.RunTask() 
at Citrix.Console.PowerShellSdk.BackgroundTaskService.BackgroundTask.Task.Run() 

May also see this error.
    DesktopStudio_ErrorId : ProvisioningTaskError
    ErrorCategory : NotSpecified
    ErrorID : DiskConsolidationFailed
    TaskErrorInformation : Terminated
    InternalErrorMessage : L’autorisation d’effectuer cette opération a été rejetée.57-79807f17787e" -IsSuccessful $False

Prerequisites for integration with VMware is available in product documentation including required account permissions. See Prepare the virtualization environment: VMware.

Apply VmWare permisison “Clone virtual machine” to the host connection account that is used to contact the VmWare hypervisor.

Problem Cause

User account for VMware vSphere does not have required permission to create catalog. Creation fails when executing VMware’s API for ‘MakeDirectory’ under the context of the user.