The error Failed to create the virtual machine; <virtual machine name>; unable to upload disk occurs when attempting to create virtual machines from an existing catalog.
A CDF trace of the behavior, might include entries similar to the following:

“MachineCreationServiceHCL:2:1:HCL-VMware:  dataCenterName: Citrix@Lab, datastoreName: Citrix_datastore"
"MachineCreationServiceHCL:2:1:HCL-VMware:  targetFolder: Preparation - testcatalog"
"MachineCreationServiceHCL:2:1:HCL-VMware: httpUrl: https://vmhypervisor.domain.com:443/folder/Preparation%20-%20testcatalog/prepare-identity.vmdk?dcPath=Citrix%26Lab&dsName=Citrix_datastore"
 
"MachineCreationServiceHCL:2:1:HCL-VMware: WebException in UploadFile. System.Net.WebException: The remote server returned an error: (404) Not Found.
   at System.Net.HttpWebRequest.GetResponse()
   at Citrix.PoolManagement.VMManager.VmmImplementation.Vmware.VmwareVmManager.UploadFile(Stream diskStream, Int64 fileLength, String name, String dataCenterName, String datastoreName, String targetFolder)"

To resolve this issue, remove special characters from the data center name. 

Problem Cause

This error can occur if the vSphere data center name contains any special characters. 

VMware KB203173