Create virtual machine fails with Error (2911) Not enough storage is available to complete this operation (0x8007000E)

Came across this error on a Hyper-V cluster running 2008 R2 SP1. As part of a previous troubleshooting effort (link), the Windows Management Framework had been upgraded to 3.0

This caused this error:

Error (2911) Insufficient resources are available to complete this operation on the xxxxxx server. Not enough storage is available to complete this operation (0x8007000E)

Recommended Action
Ensure that the virtual machine host has sufficient memory and disk space to perform this action. Try the operation again.

Some power-googling let me to this KB from MIcrosoft: Managing a host in Virtual Machine Manager fails with error 2911 – Not enough storage is available to complete this operation (0x8007000E)

So, the solution is to install the hotfix from KB8781512

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