VMware and Studio report:

"Invalid configuration for device '0'. Cannot remove virtual disk from the virtual machine because it or one of its parent disks is part of a snapshot of the virtual machine."

Check the machines for snapshots. A non persistent catalog should not have snapshots on the VMs. If there are any, remove them and then update the catalog image again. This time the task should succeed.

Problem Cause

A snapshot was added to the catalog machines. This is unsupported.